Determine the annual yield to the nearest hundredth of a percent.
You purchase CGW stock for 36.91 per share. Dividends are 0.14 per share.
To determine the annual yield of a stock, you need to calculate the dividend yield. The dividend yield is the annual dividend per share divided by the purchase price per share, expressed as a percentage.
First, let's calculate the annual dividend:
Dividends per share = $0.14
Since it's not mentioned how frequently the dividends are paid, we assume they are paid on an annual basis.
Next, calculate the dividend yield:
Dividend Yield = (Dividends per share / Purchase price per share) * 100
Dividend Yield = ($0.14 / $36.91) * 100
Dividend Yield = 0.003792 * 100
Dividend Yield = 0.3792%
Therefore, the annual yield, to the nearest hundredth of a percent, is approximately 0.38%.