The Following Information Is Available for Meyer Company $\begin{array}{lr}\text { Dividends per share of common stock } & \$ 1.80 \\\text { Market price per share of common stock } & \$ 30.00\end{array}$

question 28

Multiple Choice

The following information is available for Meyer Company:? $\begin{array}{lr}\text { Dividends per share of common stock } & \$ 1.80 \\\text { Market price per share of common stock } & \$ 30.00\end{array}$ Which of the following statements is correct?

• A) The dividend yield is 6.0%, which is of interest to investors seeking an increase in market price of their stocks.
• B) The dividend yield is 6.0%, which is of special interest to investors seeking to earn revenue on their investments.
• C) The dividend yield is 16.7%, which is of interest to bondholders.
• D) The dividend yield is 16.7%, which is an important measure of solvency.

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Definitions:

Operating Activities

The day-to-day actions taken by a business, such as selling products, managing costs, and paying bills, that are essential to running the business and generating income.

Production

The process of creating, growing, manufacturing, or improving goods and services.

Purchase Of Merchandise

The acquisition of goods intended for sale by a business, recorded as an increase in inventory.

Accounts Payable

A liability to a creditor, carried on an open account, usually for purchases of goods and services.