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A Stock You Are Considering Investing in Has a Relatively

Question 45

Multiple Choice

A stock you are considering investing in has a relatively high dividend yield. You have been reading research that questions the firm's ability to continue its dividend. You decide to look at the dividend coverage. Which of the following formulas should you use?


A) Dividend per share / Price per share
B) Dividend per share /Earnings per share
C) Earnings per share /Dividends per share
D) Total dividends / Number of shares outstanding

Correct Answer:

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