ABC Inc. declared and paid an $8 per share cash dividend on its common shares during the

Question:

ABC Inc. declared and paid an $8 per share cash on its common shares during the current accounting period. The current market value of the ABC Inc. shares is $56 per share.

Required
a. Calculate the yield (express as a percent rounded to two decimal places).
b. Would the ABC Inc. shares be classified as growth or income shares?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...