Multiple choice general knowledge

Dividend Yield Ratio

  1. Net income ? Common Equity

  2. Dividends per share / market price per share

  3. Earnings before Interest & Taxes / Sales

  4. Dividends per share / market price on toatal share
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Dividend Yield Ratio is specifically calculated as Dividends Per Share divided by Market Price Per Share, showing the percentage return an investor receives from dividends relative to the stock price. This ratio helps income-focused investors evaluate the cash return from their investment. Option A describes Return on Equity, Option C is Operating Margin, and Option D contains a typo ('toatal' instead of 'total').

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