Asked by
Emmanuel Montanez
on Oct 15, 2024Verified
Dividend yield is the percent of cash dividends paid to common shareholders relative to the:
A) Common stock's market value.
B) Earnings per share.
C) Investors' purchase price of the stock.
D) Amount of retained earnings.
E) Amount of cash.
Dividend Yield
A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicating the earnings investors are making from dividends.
Cash Dividends
Earnings given by a corporation to its investors, usually in the form of profit sharing.
Market Value
The current price at which an asset or service can be bought or sold, often used in reference to the market price of stocks or other securities.
- Develop the ability to calculate dividend yield and price-earnings ratio, and grasp their importance in the context of investing.
Verified Answer
AP
Learning Objectives
- Develop the ability to calculate dividend yield and price-earnings ratio, and grasp their importance in the context of investing.