Answer: The dividend yield on Stock A = 0.04
Step-by-step explanation:
Given: quarterly dividend = $0.15 per share
Annual dividend per share = 4 x 0.15 = $0.6 [1 year = 4 quarters]
Stock's price per share = $0.15
The computation of dividend is given by :-
Dividend yield = (annual dividend per share) divided by (the stock's price per share).
Here, Dividend yield = (0.6) ÷ 15 = 0.04
Hence, the dividend yield on Stock A = 0.04
