Which stockholder ratio requires the use of dividends per share and the current market price?
A)Return on common equity
B)Dividend payout ratio
C)Earnings per share
D)Dividend yield ratio

Question

Quizplus · Accepted Answer

The dividend yield ratio requires the use of dividends per share and the current market price. It measures the return to shareholders in the form of dividends relative to the price of the stock. The other ratios listed (return on common equity, dividend payout ratio, and earnings per share) do not involve the current market price of the stock.

Which Stockholder Ratio Requires the Use of Dividends Per Share