Question

100% Collapse 1 13 Keller Metals common stock is selling for $37 a share and has a dividend yield of 3.2 percent. What is the dividend amount? A $11.25 $1.18 Oc $1.15 D $3.49 E $11.52

Answer 1

Since, Dividend yield (%) = Dividend amount ($) / Common stock price ($).

Therefore, the Dividend amount ($) = Dividend yield (%) * Common stock price ($).

Given that,

Dividend yield (%) = 3.2 per cent

Common stock price ($) = $32 a share

Therefore, the Dividend amount ($) = 3.2% * 32 = $1.184.

So, the correct answer choice is (b) $1.18.