The Dividend Yield on a Stock Will Increase If The

question 102

Multiple Choice

The dividend yield on a stock will increase if the:

• A)dividend growth rate decreases.
• B)stock price decreases.
• C)capital gains rate decreases.
• D)stock price increases.
• E)tax rate on dividends increases.

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Definitions:

Direct Materials

Raw materials that can be directly linked to the production of specific goods or services.

Factory Overhead

Indirect costs associated with manufacturing, such as utilities, maintenance, and management expenses, not directly tied to production volumes.

Net Income

The profit of a company after all expenses, taxes, and costs have been deducted from total revenue, reflecting the actual earnings.

Sales Increase

The rise in the quantity or revenue of products sold by a company over a specific period.