Fortunade Corporation Stock Has a Price of $100 Per Share,a

question 145

Multiple Choice

Fortunade Corporation stock has a price of $100 per share,a dividend of $1.60 per share,and retained earnings of $2.00 per share.The dividend yield on this stock is

• A)2.8 percent.
• B)2.0 percent.
• C)1.6 percent.
• D)0.4 percent.

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Definitions:

Business Risk

The potential for losses or less-than-expected returns stemming from the operations or environment of a particular company or industry.

Firm's Owners

Individuals or entities that hold ownership rights in a company, gaining profits and bearing losses from its operation.

Investors

Investors are individuals or entities that allocate capital with the expectation of receiving a financial return, often through the purchase of stocks, bonds, or real estate.

Trade-off

The concept of sacrificing one good or service to purchase or produce another.