In 2014, common shareholders received $2 per share in annual dividends. The market price per share for

Question:

In 2014, common shareholders received $2 per share in annual dividends. The market price per share for common shares was $12. Compute the dividend yield for common 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...