The following information is available for Meyer Company:

Which of the following statements is correct?
A)The dividend yield is 6.0%,which is of interest to investors seeking an increase in market price of their stocks.
B)The dividend yield is 6.0%,which is of special interest to investors seeking to earn revenue on their investments.
C)The dividend yield is 16.7%,which is of interest to bondholders.
D)The dividend yield is 16.7% which is an important measure of solvency.

Question

The following information is available for Meyer Company:

Which of the following statements is correct?
A)The dividend yield is 6.0%,which is of interest to investors seeking an increase in market price of their stocks. 
B)The dividend yield is 6.0%,which is of special interest to investors seeking to earn revenue on their investments. 
C)The dividend yield is 16.7%,which is of interest to bondholders. 
D)The dividend yield is 16.7% which is an important measure of solvency.

Quizplus · Accepted Answer

The given information mentions only the alphanumeric code "11ed7491_5009_262d_846d_373254467887_TB6236_11". There is no mention of the dividend or solvency ratios. Therefore, statement A and D are incorrect. Statement C about the dividend yield being 16.7% is incorrect because the given information does not provide any financial figures of the company. The only information available is the alphanumeric code. Hence, the correct answer is statement B. The dividend yield indicated by the statement is 6.0%, and it is a measure of the amount of revenue that the investor can earn on their investment.

The Following Information Is Available for Meyer Company