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.
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.
Chapter14: Corporation Accounting
Section: Chapter Questions
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.
Expert Solution
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Step 1
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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