Dividend Yield Is Defined as the Market Price Per Share

question 108

True/False

Dividend yield is defined as the market price per share divided by earnings per share.

---

Definitions:

Fair Market Price

The price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Preferred Stock

Preferred Stock represents a class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often including fixed dividends.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the company's profits.

Fair Market Value

The cost at which a property would be exchanged in a competitive bidding environment.