The following information is available for a company Dividends per share of comm
ID: 2437737 • Letter: T
Question
The following information is available for a company Dividends per share of common stock 1.40 Market price per share of common stock 17.50 Which of the following statements is correct? Select one: O a. The dividend yield is 12.5%, which is of interest to bondholders O b. The dividend yield is 8.0 times the market price, which is important in solvency analysis. ° C. The dividend yield is 8.0%, which is of interest to investors seeking an increase in market price of their stocks. O d. The dividend yield is 8.0%, which is of special interest to investors seeking current returns on their investments.Explanation / Answer
Option D is the answer
Dividend yield ratio = Dividend per share / Market price per share
= 1.40/17.50
= 8%
Dividend yield aids the investors in calculating the returns on their investments. That is, dividends for their shares in the company
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