The dividend yield of Purple Company dropped at the end of 2012. Reasons the dividend yield fell could include all of the following except:

Question

Quizplus · Accepted Answer

Dividend yield is calculated as the annual dividends per share divided by the price per share. If the dividend is cut or the stock price rises, the dividend yield would decrease. However, if the stock price declines, the dividend yield would actually increase, assuming the dividend amount remains constant.

The Dividend Yield of Purple Company Dropped at the End