Acme Widget,Inc

Multiple Choice

Acme Widget,Inc.has one million shares of common stock outstanding at a price per share of $62.50.The company earned $6 million after taxes.The annual dividend is $2.50 per share.The company has assets of $250,000,000 and liabilities of $50,000,000.What is the dividend yield?

A) 1 percent
B) 2 percent
C) 3 percent
D) 4 percent
E) 5 percent