The Zolo Co

question 83

Multiple Choice

The Zolo Co. just declared that it is increasing its annual dividend from $1.00 per share to $1.25 per share. If the stock price remains constant,then:

• A) the capital gains yield will decrease.
• B) the capital gains yield will increase.
• C) the dividend yield will increase.
• D) the dividend yield will also remain constant.
• E) neither the capital gains yield nor the dividend yield will changE.

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Definitions:

LIFO Inventory Method

"Last In, First Out," an inventory costing method where the last items purchased are the first ones sold, affecting the cost of goods sold and ending inventory value.

Cost Of Goods Sold

The direct costs tied to the production of products sold by a company, including materials and labor.

Merchandise Inventory

Merchandise Inventory includes goods that are purchased and held for resale by a retail or wholesale business, representing one of the primary sources of revenue.

FIFO

An inventory valuation method where the first items purchased or produced are the first ones sold, impacting the cost of goods sold and inventory valuation.