General Electric Company had earnings per share of $1.72 for 2005 and $1.56 for 2004. In addition,

Question:

General Electric Company had earnings per share of $1.72 for 2005 and $1.56 for 2004. In addition, the dividends per share were $0.91 for 2005 and $0.82 for 2004. The market price of GE's stock closed at $35.05 and $36.50 on December 31, 2005 and 2004, respectively.
a. Determine the yield for General Electric on December 31, 2005 and 2004. Round percentages to two decimal places.
b. Interpret these measures.

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...