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29 September, 18:35

A stock quote indicates a stock price of $60 and a dividend yield of 3%. The latest quarterly dividend received by stock investors must have been _ per share. a. $1.80 b. $0.45 c. $0.55 d. $1.25

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  1. 29 September, 20:19
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    b. $0.45

    Explanation:

    The computation of the quarterly dividend received is as follows:

    Provided that

    Stock price = $60

    Dividend yield = 3%

    So, the dividend for a year

    = Stock price * dividend yield

    = $60 * 3%

    = $1.8

    And, the quarterly dividend received would be

    = Annual dividend : number of the quarter in a year

    = $1.8 : 4

    = $0.45
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