Question

Gwen owns 357 shares of common stock in a software company. The software company recently paid a cash dividend of $3.75 per share.

If the current price of the stock is $14.75, what is the dividend yield of the stock?

25.42%
2.54%
1.27%
12.71%

????

Answer 1

25.42%

Answer 2

(3.75 / 14.75) * 100%

Answer 3

25.42%

Answer 4

[AI-generated answer — Explain Bot]

To calculate the dividend yield of a stock, you need to divide the annual dividend per share by the current stock price and multiply by 100 to get the percentage.

In this case, Gwen owns 357 shares, and the software company recently paid a cash dividend of $3.75 per share. So the total dividend she received is 357 shares * $3.75 per share = $1,339.25.

The current price of the stock is $14.75 per share.

Now, let's calculate the dividend yield:

Dividend Yield = (Annual Dividend per Share / Current Stock Price) * 100

Dividend Yield = ($1,339.25 / (357 shares * $14.75 per share)) * 100

Dividend Yield = ($1,339.25 / $5,261.75) * 100

Dividend Yield ≈ 25.42%

Therefore, the correct answer is 25.42%.