Question

the dividend yield it is not 8.33, 0.02 or 2.27

5 WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2 2020 2019 $ 981 1,931 $2,912 2018 843 1,730 points Current assets $ 764 2,424 Other assets Total assets $3,188 $2,573 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $ 588 $ 841 1,034 1,037 $2,912 $ 734 1,582 910 1,018 $3,188 929 $2,573 WIPER INC Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales $3,061 $2,924 Operating income Interest expense Net income Other data: Average number of common shares outstanding Total dividends paid 307 321 95 76 24 219 42.4 47.8 $ 61.0 $ 53.4 LO

Answer 1

Dividend Yield = Annual dividend per share / Share price per share

Annual Dividend = Dividend paid / number of common shares outstanding

=$ 61 / 42.4 = $ 1.4387

=₹ 1.44 approx. (round off)

Share price = Share holders equity / number of common shares outstanding

= $ 1,018 / 42.4

= $ 24

Dividend Yield = 1.44 / 24 = 0.06 = 6%