What Dividend Yield Would Be Reported in the Financial Press

question 122

Multiple Choice

What dividend yield would be reported in the financial press for a stock that currently pays a $1 dividend per quarter and the most recent stock price was $40?

• A)2.5 percent
• B)4.0 percent
• C)10.0 percent
• D)15.0 percent $1 dividend per quarter = $4 annually

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Definitions:

Average Total Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue that comes from selling an additional unit.

Long-run Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity supplied by producers over a longer period, when all inputs can be fully adjusted.

Break-even Point

The financial state at which total costs and total revenues are equal, indicating that a business or project is neither at a loss nor making a profit.