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

Question

Quizplus · Accepted Answer

Dividend yield ratio is the dividend per share divided by the market price per share. As the question does not mention the dividend per share or the market price per share, we cannot calculate the exact dividend yield ratio for Oratz Company. However, we can look at the answer choices and make an educated guess based on typical industry averages.

A dividend yield of 0.5% seems too low and unlikely for most companies. Similarly, a dividend yield of 5.7% seems too high and would suggest that the company is paying out a large portion of its earnings in dividends, which may not be sustainable in the long term.

A dividend yield of 5.2% may be possible for some companies, but it is still on the high side.

Therefore, the best choice is C) 5.5%, as it falls in the middle of the answer choices and is a reasonable estimate for Oratz Company's dividend yield ratio.

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