The following information is available for Dorman 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 Dorman 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 information provided "11ea906a_d226_c274_aec7_6136da139292_TB2051_00" does not give us any information about the solvency or bondholders of the company. The only relevant piece of information in this case is the dividend yield, which is 6.0%. This is of special interest to investors seeking to earn revenue on their investments. Therefore, option B is the correct answer.

The Following Information Is Available for Dorman Company