# Over the last year, Calzone Corporation paid a quarterly dividend of $0.10 in each of the four... ## Question: Over the last year, Calzone Corporation paid a quarterly dividend of$0.10 in each of the four quarters. The current stock price of Calzone Corporation is $39.78. What is the dividend yield for Calzone stock? ## Dividend Yield: The dividend is paid out of the net income to the shareholders for their investment in the company's equity. The dividend yield is a ratio that measures the proportion of the dividend paid relative to the market price per share. A company that has a high dividend yield usually has a higher payout ratio which indicates that not much of its net income is retained. ## Answer and Explanation: Answer: Calzone Corporation's stock's dividend yield is 1.01%. Explanation: Calzone Corporation has shared the following information for last year: • Quarterly dividend =$0.10
• Current stock price = $39.78 Computation: The first step is to determine the annual dividend: • Annual dividend = Quarterly dividend * 4times • Annual dividend =$0.10 * 4times
• Annual dividend = $0.40 The second step is to determine the dividend yield: • Dividend yield = Annual dividend / Current stock price • Dividend yield =$0.40 / \$39.78
• Dividend yield = 1.01%