To evaluate the amount of dividends they receive,investors use the ratio called
A)Price Earning ratio
B)Return on Equity
C)Dividend yield ratio
D)Current ratio

Question

Quizplus · Accepted Answer

The dividend yield ratio is the ratio of the annual dividend per share to the market price per share. It helps investors evaluate the returns they are getting from their dividend investments. A higher dividend yield ratio indicates a higher return on investment. The Price Earning ratio (A) and Return on Equity (B) are used to evaluate the overall performance of a company, while the Current ratio (D) is used to evaluate the liquidity of a company.

To Evaluate the Amount of Dividends They Receive,investors Use the Ratio