Multiple Choice QuestionZoe owns shares of Proctor and Gamble stock. If the stock is trading for $66 and the annual dividend payment is $2.00, what is the dividend yield for this stock?Multiple choice question.3 percent2 percent66 percent33 percent
Question
Multiple Choice QuestionZoe owns shares of Proctor and Gamble stock. If the stock is trading for 2.00, what is the dividend yield for this stock?Multiple choice question.3 percent2 percent66 percent33 percent
Solution
The dividend yield is calculated by dividing the annual dividend payment by the price of the stock and then multiplying by 100 to get a percentage.
Here's the step-by-step calculation:
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Identify the annual dividend payment and the price of the stock. In this case, the annual dividend payment is 66.
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Divide the annual dividend payment by the price of the stock: 66 = 0.0303
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Multiply the result by 100 to get a percentage: 0.0303 * 100 = 3.03%
So, the dividend yield for this stock is approximately 3 percent. Therefore, the correct answer to the multiple choice question is "3 percent".
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