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:

Average Tax Rate

The proportion of total income that an individual or corporation pays in taxes, calculated by dividing the total taxes paid by total income.

Marginal Federal Income Tax

The rate at which the last dollar of a taxpayer's income is taxed by the federal government.

Federal Tax Revenue

Revenue the federal government receives from taxes, including income tax, corporate tax, and other taxes.

Personal Income Tax

A tax levied by the government on individuals’ income, including wages, salaries, and investment returns.