Question

Considering a share of stock with a $65 purchase price, sales price of $85 at the...

Considering a share of stock with a $65 purchase price, sales price of $85 at the end of a four year investment period and annual dividends of $2.50, the approximate dividend yield is?

A) 10%

B) 6.67%

C) cannot determine based on data provided

D) 2.94%

E) 2.60%

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Answer #1

Approximate dividend yield is calculated using the RATE function:-

=RATE(nper,pmt,pv,fv)

=RATE(4,2.5,-65,85)

=10%

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