Asked by Joselyne Saldaña Gonzalez on May 26, 2024
Verified
The dividend yield is equal to the dividends per share divided by the par value per share of common stock.
Dividend Yield
A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions.
Par Value
A dollar amount assigned to each share of stock.
- Understand the importance of dividend policies and the retention of earnings for practical application in operations.
Verified Answer
TS
Tanya SainiMay 31, 2024
Final Answer :
False
Explanation :
The dividend yield is equal to the dividends per share divided by the market price per share of common stock.
Learning Objectives
- Understand the importance of dividend policies and the retention of earnings for practical application in operations.
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