The Ordinary Shares of the Owl Company Have a Book

question 53

Multiple Choice

The ordinary shares of the Owl Company have a book value of $10.80 and a market value of $14.30. The company pays $0.14 in dividends each quarter. What is the dividend yield?

• A) 1.0%
• B) 5.2%
• C) 1.3%
• D) 3.9%

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Definitions:

Non-Operating Activities

Non-operating activities involve transactions not related to the core business operations, such as investment income or losses and extraordinary items.

Asset Disposals

The process of removing a fixed asset from the financial statements due to sale, trade, or retirement, involving the calculation of any gain or loss.

Interest

A charge for borrowed money, generally a percentage of the borrowed amount.

Dividends

Dividends are portions of a company's earnings paid to shareholders as a distribution of profits.