Determine the annual yield to the nearest hundredth of a percent.
You purchase TEK stock for 15.53 per share. Dividends are 1.48 per share.
To calculate the annual yield, you need to divide the annual dividends per share by the purchase price per share, and then multiply the result by 100 to express it as a percentage.
First, find the annual dividends by multiplying the dividend per share by the number of shares. In this case, the dividend is $1.48 per share.
Next, divide the annual dividends by the purchase price per share to find the yield. In this case, the purchase price is $15.53 per share.
Annual Yield = (Annual Dividends / Purchase Price per Share) * 100
So, the calculation would be:
Annual Yield = ($1.48 / $15.53) * 100
To round the result to the nearest hundredth of a percent, you would round the final answer to two decimal places.
Performing the calculation, the annual yield is approximately 9.51%.