What Dividend Yield Would Be Reported in the Financial Press

question 10

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%
• B) 4.0%
• C) 10.0%
• D) 5.0%

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Definitions:

Unambiguous

Clear and precise with only one interpretation, leaving no doubt or confusion.

Ambiguous

Something that can be understood in more than one way; lacking clearness or definiteness.

Productivity

In industry, the capability to produce effectively, gauged by how much output is generated per input unit.

Reinforcement

In psychology, a process by which a behavior is strengthened or increased in frequency, often through the application of a reward or the removal of a negative stimulus.