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Finra Series-7 Exam - Topic 5 Question 75 Discussion

Posted by Thurman on Oct 04, 2023 at 10:26 AM

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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19 comments · newest first
ME
Melvin 11 months ago
Wait, are we sure about those numbers?
IS
Isaiah 12 months ago
Definitely going with option B, seems right.
AN
Angella 12 months ago
I thought it would be higher, honestly.
JE
Jesse 1 year ago
That’s a 4% yield at $30!
VI
Viva 1 year ago
The company pays out $1.20 in dividends.
AR
Arletta 1 year ago
If the company pays out 20% of $6, that’s $1.20 in dividends. Dividing that by $30 gives us a yield of 4%, right?
KA
Kallie 1 year ago
I’m a bit confused about how to approach this. Is it just the dividend percentage or do we need to factor in the earnings too?
VI
Virgie 1 year ago
I remember a similar question where we had to find the yield based on earnings and dividends. I think the yield here might be around 4%.
YA
Yasuko 1 year ago
I think the stock yield is calculated by dividing the dividend by the stock price, but I'm not entirely sure about the exact numbers.
RE
Rex 1 year ago
I'm a little unsure about this one. I know the stock yield is the dividend per share divided by the stock price, but I'm not sure how to calculate the dividend per share from the information given. I'll need to review the concepts around dividends and stock yields before I can confidently answer this question.
WY
Wynell 1 year ago
Okay, let me walk through this step-by-step. The company earns $6 per share, and pays out 20% of that in dividends. So the dividend per share is 20% of $6, which is $1.20. The stock price is $30 per share. To calculate the stock yield, I need to divide the dividend per share by the stock price, which gives me $1.20 / $30 = 0.04 or 4%. I think I've got it!
KR
Krissy 1 year ago
I've got this! The stock yield is the dividend per share divided by the stock price, expressed as a percentage. So if the company earns $6 per share and pays out 20% in dividends, that's $1.20 per share. And the stock price is $30, so the stock yield is $1.20 / $30 = 0.04 or 4%. Easy peasy!
UL
Ulysses 1 year ago
Hmm, I'm a bit confused. The question is asking for the stock yield, but it's not clear to me how to calculate that from the information given. I'll need to think this through carefully and make sure I understand the concepts before answering.
WA
Wade 1 year ago
Okay, let me think this through. The company earns $6 per share and pays out 20% in dividends. So the dividend per share is 20% of $6, which is $1.20. The stock sells at $30 per share, so the stock yield would be the dividend per share divided by the stock price, which is $1.20 / $30 = 0.04 or 4%.
AN
Antione 1 year ago
I think the client-side components of Oracle Data Guard Broker are the Oracle Enterprise Manager Cloud Control and the Oracle Data Guard command-line interface (DGMGRL). The other two options don't sound like client-side components to me.
CA
Catalina 1 year ago
Okay, I think I've got this. The functionality part of the spec would define the actual tasks and capabilities of the site, like a detailed product search or shopping cart management. So I'm going to go with option B.
AR
Arletta 1 year ago
I think reviewing bank statements relates to bank reconciliation, but I'm not entirely sure.
SH
Sharika 1 year ago
Ah, I know this one! The correct answer is B - a CI pipeline enables a faster feedback loop. That's one of the main reasons organizations implement CI, to get quicker feedback on their code changes and catch issues earlier in the development process.
VI
Virgina 1 year ago
Hmm, this seems like a tricky one. I'll need to think through the different Cisco ISE personas and their storage requirements.
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