FINRA Series 7

Category - Series 7

A company earns $6 per share and pays out 20% in common stock dividends. What does the stock yield if it sells at $30 per share?
  1. 10%
  2. 4%
  3. 2.5%
  4. 6%
Explanation
Answer: B - 4%. The dividend is $1.20 per share ($6 x 20%). Divide this by the stock price to obtain the yield.
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