Suppose That the Annual Dividend Per Share of Stock Is

question 29

Multiple Choice

Suppose that the annual dividend per share of stock is $1.80 and the closing price of the stock is $32.00, the yield on the stock would be approximately

• A)10.5%
• B)5.7%
• C)21.6%
• D)9.7%

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Definitions:

Eligible Dividends

Eligible dividends are those that are designated by corporations in certain countries to qualify for preferential tax treatment by the recipients.

Tax Paid

The amount of money that has been handed over to governmental entities as required by tax laws, based on earnings, sales, property values, etc.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, reflecting the percentage of tax applied to your next dollar of taxable income.

Interest Income

Revenue earned from investments in interest-bearing financial instruments, such as bonds, savings accounts, or loans.