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.

Question

Quizplus · Accepted Answer

Dividend yield is calculated as the annual dividend per share divided by the stock's market value. Therefore, it is relative to the common stock's market value.

Dividend Yield Is the Percent of Cash Dividends Paid to Common