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Finra Exam Series-7 Topic 5 Question 75 Discussion
Actual exam question for
Finra's
Series-7 exam
Question #: 75
Topic #: 5
[All Series-7 Questions]
Topic #: 5
A company earns $6 per share and pays out 20% in common stock dividends.
What does the stock yield if it sells at $30 per share?
Suggested Answer:
B
4%. The dividend is $1.20 per share ($6 x 20%). Divide this by the stock price to obtain the yield.
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