Which of the Following Is False About the Dividend Yield

question 54

Multiple Choice

Which of the following is false about the dividend yield ratio?

• A)High growth companies tend to have lower dividend yield ratios.
• B)It measures the rate of return a shareholder earned from dividends during the year.
• C)A low dividend yield, by itself, is neither bad nor good.
• D)Dividend yield ratio = Market price per share ÷ Dividends per share.

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Definitions:

P-to-O Expectancies

The belief in the probability that particular efforts will lead to desired outcomes, often related to work motivation and performance.

Employee Motivation

The extent of passion, engagement, and inventive effort that a company's employees put into their tasks.

Performance Accurately

The precise and correct execution or accomplishment of a task or duty as required.

Expectancy Theory

A motivation theory stating that an individual's willingness to exert effort is a function of the expected outcome of the effort, the value of that outcome, and the perceived likelihood that the effort will lead to the expected outcome.