Which of the Following Statements Correctly Describes Either the Dividend

question 50

Multiple Choice

Which of the following statements correctly describes either the dividend yield or earnings per share?

• A) The dividend yield decreases when net income increases.
• B) Earnings per share are per share of both common and preferred stock.
• C)The dividend yield increases when the market price per share decreases.
• D)Earnings per share decreases when dividends per share decrease.

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Definitions:

Earnings Differential

The difference in wages or salaries arising from differences in occupation, education, experience, or other factors.

Primary Job Market

The sector of the job market that consists of high-paying jobs which often require a higher education or specialized skills.

Income Disparity

The unequal distribution of income within a population, often leading to social and economic inequality.

Economic Rent

Income earned from a factor of production that exceeds the owner's opportunity cost, often due to unique advantages or monopolistic control.