Ovit, Inc. has preferred stock with a price of $20.24 and a dividend of $1.74 per...

Question

Question

Ovit, Inc. has preferred stock with a price of $20.24 and a dividend of $1.74 per year. What is its dividend yield? The dividend yield is?

(Round to one decimal place.)

business finance

Answer 1

Answer #1

Dividend yield is computed by using the below formula:

Dividend yield = Dividend / Stock price

Dividend = $ 1.74

Stock price = $ 20.24

By plugging these figures in the above mentioned formula, we shall get:

Dividend yield = $ 1.74 / $ 20.24

= 8.6% Approximately

Feel free to ask in case of any query relating to this question

Answer 2

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