Which of the following ratios represents dividends per common share in relation to market price per common share?
A)Dividend payout
B)Dividend yield
C)Price/earnings
D)Book value per share
E)Percentage of earnings retained

Question

Quizplus · Accepted Answer

Dividend yield is defined as dividends per common share divided by market price per common share. It is used as an indicator of the income generated by a company's stock for investors. A higher dividend yield indicates a higher income from the stock. The other options do not relate to dividends per common share in relation to market price per common share.

Which of the Following Ratios Represents Dividends Per Common Share