Asked by Kaylee Dalena on May 31, 2024
Verified
Which one of the following ratios helps to indicate a company's effectiveness in meeting the stockholder profitability objectives?
A) profit margin
B) acid-test
C) dividend yield
D) inventory turnover
Stockholder Profitability
The extent to which shareholders earn returns on their investments in a company through dividends and stock price appreciation.
Dividend Yield
A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.
- Identify and calculate various financial ratios and understand their significance in analyzing a company's financial health.
Verified Answer
MC
Maggie ChampionJun 01, 2024
Final Answer :
C
Explanation :
Dividend yield is the ratio of the annual dividend per share to the current market price per share. It indicates the percentage return on investment that stockholders receive in the form of dividends. Therefore, a high dividend yield indicates that the company is effectively meeting stockholder profitability objectives.
Learning Objectives
- Identify and calculate various financial ratios and understand their significance in analyzing a company's financial health.
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