Asked by Tyteana Ratliff on May 20, 2024
Verified
Dividend yield is calculated by dividing dividends per share by earnings per share and measures the current dividend return to investors.
Dividend Yield
A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often expressed as a percentage.
Dividends Per Share
A measure of how much dividend income a company pays out to its shareholders per share of its stock.
- Differentiate among the applications of various financial ratios in assessing the performance of a company.
Verified Answer
CP
Chastity PattersonMay 26, 2024
Final Answer :
False
Explanation :
Dividend yield is calculated by dividing the annual dividends per share by the current market price per share, measuring the dividend return relative to the stock price, not the earnings per share.
Learning Objectives
- Differentiate among the applications of various financial ratios in assessing the performance of a company.
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