Dividend yield is the most important ratio associated with stockholders' equity and is a common measure of management's performance.

Question

Quizplus · Accepted Answer

Dividend yield is a measure of the income a shareholder receives in relation to the price of the stock, not directly a measure of management's performance. Ratios like return on equity (ROE) are more directly associated with evaluating management's performance.

Dividend Yield Is the Most Important Ratio Associated with Stockholders