Which of the Following Statements Is True of Dividend Yield

question 76

Multiple Choice

Which of the following statements is true of dividend yield?

• A)When the dividend of a stock is subtracted from the par value,the result is the dividend yield.
• B)When the market value of a stock is subtracted from the dividend,the result is the dividend yield.
• C)When the dividend of a stock is divided by the price,the result is the dividend yield.
• D)When the dividend of a stock is divided by the market cap,the result is the dividend yield.
• E)When the capital of a stock is added to the dividend,the result is the dividend yield.

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Definitions:

Fixed Costs

Expenses that do not change in total amount with fluctuations in business activity level, such as rent, salaries, and insurance.

Inventory

The raw materials, work-in-progress, and finished goods that a company holds for the purpose of sale in the future.

Absorption Costing

A method of accounting that encompasses all costs associated with manufacturing a product, including direct materials, direct labor, and all manufacturing overhead costs, both fixed and variable.

Variable Costing

A costing method where only variable costs (costs that change with production volume) are included in the product cost, excluding fixed costs.