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In 2014, W Co Had a Dividend Yield Ratio of 0.3

question 13

Multiple Choice

In 2014, W Co had a dividend yield ratio of 0.3% and J.C. Co. reported a yield of 6.9%. What is the most likely reason for W Co's relatively low dividend yield in comparison to J.C. Co's ratio?

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Definitions:

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Cash Dividend

A share of a company's profits paid out to its shareholders in cash.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the total number of shares owned by shareholders.

Shares Outstanding

The total number of shares of stock that have been issued and are currently owned by shareholders.

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