Baker Industries pays a constant annual dividend of $.80 a share and currently sells for $12.50...

Question

Question

Baker Industries pays a constant annual dividend of $.80 a share and currently sells for $12.50 a share. What is the rate of return?

Answer 1

Answer #1

Rate of return = Annual Dividend / Current Price * 100

= $ 0.80 / $ 12.50 * 100

= 6.40%

Hence the correct answer is 6.40%

Answer 2

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