Which of the Following Ratios Represents Dividends Per Common Share

question 1

Multiple Choice

Which of the following ratios represents dividends per common share in relation to market price per common share?

• A) dividend payout
• B) dividend yield
• C) price/earnings
• D) book value per share
• E) percentage of earnings retained

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Definitions:

Free-Rider

An individual who benefits from resources, goods, or services without paying for the cost of the benefit.

Market Forces

The economic factors affecting the price, demand, and availability of goods and services in a free market, primarily driven by supply and demand.

Free of Charge

A situation or service where no payment is required to obtain a good or service.

Rival

In economics, a rival good is one whose consumption by one person reduces its availability for another person.