Finra Exam Series-7 Topic 5 Question 75 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 75
Topic #: 5

A company earns $6 per share and pays out 20% in common stock dividends.

What does the stock yield if it sells at $30 per share?

A10%

B4%

C2.5%

D6%

Show Suggested Answer

Suggested Answer: B

4%. The dividend is $1.20 per share ($6 x 20%). Divide this by the stock price to obtain the yield.

by Thurman at Oct 04, 2023, 10:26 AM

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