Given the Following Information, Calculate the Dividend Yield

question 23

Multiple Choice

Given the following information, calculate the dividend yield.
Quarterly dividend: $0.50 per share
Current share price: $20.00

• A)10%
• B)2.5%
• C)5%
• D)1%

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Definitions:

Halo Effect

The cognitive bias that causes one's impression of a person to influence one's thoughts and feelings in unrelated areas.

Mere-Exposure Effect

A psychological phenomenon by which people tend to develop a preference for things or people they are exposed to frequently.

Self-Serving Bias

A cognitive bias that causes individuals to see themselves in a more favorable light, attributing successes to internal factors and failures to external factors.

Situational Bias

The effect that context or environment can have on an individual's behaviour or decisions, often leading to skewed perceptions or judgements.