On October 23, 2014, Wilkerson Company had a market price of $40 per share of common stock

On October 23, 2014, Wilkerson Company had a market price of $40 per share of common stock. For the previous year, Wilkerson paid an annual dividend of $1.20. Compute the dividend yield for Wilkerson Company.


Answer:

Dividend Yield = Dividends per Share of Common Stock
Market Price per Share of Common Stock
Dividend Yield = $1.20
$40 = 0.03, or 3%