The ratio which would be most helpful to an investor who is investing in ordinary shares primarily for dividends rather than for appreciation in market price, is:
A) return on total assets.
B) dividend yield.
C) rate of return on ordinary equity.
D) current ratio.

Question

Quizplus · Accepted Answer

The dividend yield represents the amount of dividends paid per share relative to the market price of the share. This ratio is particularly helpful for investors who prioritize dividend income over capital appreciation.

The Ratio Which Would Be Most Helpful to an Investor