Dividend Yield Is Calculated by Dividing

question 130

Multiple Choice

Dividend yield is calculated by dividing

• A) the market price of one share of stock by the annual dividend per share.
• B) the annual dividend per share by the market price of one share of stock.
• C) earnings per share by market price per share.
• D) annual dividend per share by earnings per share.

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Definitions:

Liability Accounts

These accounts record obligations or amounts owed by a business to creditors, which can include loans, accounts payable, mortgages, and other debts.

Wages Payable

A liability account that records the amounts owed to employees for work performed that have not yet been paid.

Accounts Receivable

Funds that customers owe to a company for products or services provided but for which payment has not been received.

Unearned Revenue

Money received by a business for services or products yet to be delivered or provided, recognized as a liability on the balance sheet.