On June 30, Rae Corporation had a market price of $100 per share of common stock. For the previous year, Rae paid an annual dividend of $8.00 per share. Compute the dividend yield for Rae Corporation.

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
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Problem 19EA: Jupiter Corporation earned net income of $90,000 this year. The company began the year with 600...
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On June 30, Rae Corporation had a market price of $100 per share of common stock. For the previous year, Rae paid an annual dividend of $8.00 per share.

Compute the dividend yield for Rae Corporation.

 

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Dividend yield is expressed in percentage that depicts the percentage of dividend compared to stock price.

Investment decisions are often taken based on the dividend yield.

Dividend Yield = Yearly Dividend / Current market Price of stock

 

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