Asked by Charles Griffey on Jul 12, 2024
Verified
Dividend yield is computed by dividing earnings per share by the market value per share.
Dividend Yield
A financial ratio that indicates how much a company pays out in dividends each year relative to its share price, serving as a measure of return on investment.
Earnings Per Share
A financial ratio that calculates the portion of a company’s profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.
Market Value
The present cost at which a good or service is available for purchase or sale in the market.
- Investigate the significance of financial ratios, notably dividend yield and price-earnings ratio, in the evaluation of company performance.
Verified Answer
Learning Objectives
- Investigate the significance of financial ratios, notably dividend yield and price-earnings ratio, in the evaluation of company performance.
Related questions
The Price-Earnings Ratio Reveals Information About the Stock Market's Expectations ...
Lewis Company Had Net Income of $67,000 ...
The Price-Earnings Ratio Is Computed by Dividing Earnings Per Share ...
Du Pont Analysis Breaks a Firm's ROE into Components Such ...
If a Firm's Ratio of Stockholders' Equity/total Assets Is Lower ...