On June 30, 2014, Setzer Corporation had a market price of $100 per share of common stock

On June 30, 2014, Setzer Corporation had a market price of $100 per share of common stock. For the previous year, Setzer paid an annual dividend of $4.00. Compute the dividend yield for Setzer Corporation.


Answer:

Dividend Yield = Dividends per Share of Common Stock
Market Price per Share of Common Stock
Dividend Yield = $4.00
$100
= 0.04, or 4%