The following information is available for payton incorporated. at the end of the year, the market price of its common stock is $550 per share. earnings per share totaled $100 and dividends per share in the amount of $15 were paid during the year. the dividend yield is:

Dividends yield 2.72%

Explanation:

dividends yield formula:

dividends 15

market price 550

The earning per share are not relevant for calculation.

15/550 = 0.027272727

Dividend yield 2.72%

This means that if an investor purchase the share at current price and the dividends remains at the same value, his investment will yield 2.72% per year

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i hope this you! : )

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