A company paid $0.80 in cash dividends per share. Its earnings per share is $4.52 and...

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A company paid $0.80 in cash dividends per share. Its earnings per share is $4.52 and its market price per share is $26.00. I

business accounting

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Answer 1

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Calculation of Dividend yield on share

Dividend yield: It is the rate of return in the form of dividend on investment in a share at its current market price. Dividend yield is calculated by dividing the annual dividend per share by its current market price and is expressed in percentage.

Dividend yield = Annual Dividend per share/ Current market price of the share

= $ 0.80/ $ 26.00

= 3.077% or 3.08% (approximately)

Thus the dividend yield of the share given in the question is 3.08%

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Answer 2

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