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Dwayne Teamer
on Dec 16, 2024

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Edison Corporation paid a dividend of $10 per share on its $100 par preferred stock and $4 per share on its $20 par common stock. The market value of the common stock is $80 per share. Edison's dividend yield is

A) 5%
B) 10%
C) 25%
D) 20%

Dividend Yield

A metric indicating the proportion of a company's annual dividends in relation to its share price.

Par Preferred Stock

Preferred stock with a nominal value assigned in the corporate charter, which determines the issue price and face value for dividend calculations.

Par Common Stock

The nominal or face value assigned to a share of common stock, as stated in the corporate charter.

  • Ascertain and expound on the role of dividend yield within investment analysis.
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JS
Jason SebastianDec 23, 2024
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