Laroche Company's dividend yield ratio on December 31,20 × 6 was closest to:

Question

Quizplus · Accepted Answer

The dividend yield ratio is calculated by dividing the annual dividend per share by the current market price per share, and then multiplying by 100 to express the result as a percentage. Since we are not given the stock price or annual dividend, we cannot calculate the exact answer. However, we can eliminate answer choices based on common sense. A dividend yield of 1.6% is very low and unlikely for most common stocks. A yield of 4.6% is on the high side and could indicate a risky investment or a company in financial trouble. Therefore, the most reasonable choice is C, 4.3%, which falls within a typical range for dividend yields.

Laroche Company's Dividend Yield Ratio on December 31,20 × 6