Answer: Option (c) is correct.
Explanation:
Shares book value = $21.60
market value = $28.60
Pays dividend in each quarter = $0.28
Annual dividend = Dividend in each quarter × 4
= $0.28 × 4 ⇒ $1.12
Therefore,
Dividend yield = [tex]\frac{Annual\ Dividend}{Current\ Price}[/tex]
= [tex]\frac{1.12}{28.60}[/tex]
= 3.9% (approx.)
Hence, dividend yield is 3.9%.
