Match the ratio that goes with each formula.
-$\frac {\text {Dividends per Common Share }} { \text {Market Price per Common Share} }$

A)degree of financial leverage
B)basic earnings per common share
C)price/earnings ratio
D)percentage of earnings retained
E)dividend payout
F)dividend yield
G)book value per share

Question

Match the ratio that goes with each formula.
-$\frac {\text {Dividends per Common Share  }} { \text {Market Price per Common Share} }$

A)degree of financial leverage
B)basic earnings per common share
C)price/earnings ratio
D)percentage of earnings retained
E)dividend payout
F)dividend yield
G)book value per share

Quizplus · Accepted Answer

The given formula, $\frac {\text {Dividends per Common Share  }} { \text {Market Price per Common Share} }$, is used to calculate the dividend yield. This ratio shows how much a company pays out in dividends each year relative to its stock price.

Match the Ratio That Goes with Each Formula Dividends per Common Share Market Price per Common Share\frac {\text {Dividends per Common Share }} { \text {Market Price per Common Share} }Market Price per Common ShareDividends per Common Share ​

Match the Ratio That Goes with Each Formula $\frac {\text {Dividends per Common Share }} { \text {Market Price per Common Share} }$