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Nick bought a portfolio of 2000 MNRA shares with his retrenchment payout.
The value of each share is currently $12.50, and Nick is paid an annual dividend of
$0.75 per share.
What is the dividend yield on the shares?

To find the dividend yield on Nick's shares, we need to use the formula for dividend yield:

\[ \text{Dividend Yield} = \left( \frac{\text{Annual Dividend per Share}}{\text{Price per Share}} \right) \times 100\% \]

Given:
- Annual dividend per share: $0.75
- Current price per share: $12.50

Let's plug in these values into the formula:

\[ \text{Dividend Yield} = \left( \frac{0.75}{12.50} \right) \times 100\% \]

Calculating the dividend yield:

\[ \text{Dividend Yield} = \left( \frac{0.75}{12.50} \right) \times 100\% = 0.06 \times 100\% = 6\% \]

Therefore, the dividend yield on the shares is 6%.

Would you like more details or have any questions about this calculation?

Here are 8 relative questions that expand on this information:
1. What are other ways to calculate dividend yield?
2. How can changes in the stock price affect the dividend yield?
3. What are the implications of a high dividend yield for investors?
4. How does dividend yield compare to other financial metrics like earnings yield?
5. What factors can influence a company's ability to pay dividends?
6. How does reinvestment of dividends impact the overall return on investment?
7. What are the tax implications of receiving dividends?
8. How can investors use dividend yield to compare different stocks?

**Tip:** Always check for any recent changes in dividend policy or stock price when calculating the dividend yield, as these factors can significantly affect the result.

Learn how to calculate dividend yield for a portfolio of 2000 MNRA shares, each with a $0.75 annual dividend and a current price of $12.50 per share. Understand the dividend yield formula and its application in finance.

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