The Formula for Computing the Dividend Yield Is

question 3

Multiple Choice

The formula for computing the dividend yield is

• A)annual dividend per share of common stock/market price per share of common stock.
• B)market price per share of common stock/earnings per share.
• C)total stockholders' equity/number of shares of outstanding common stock.
• D)(net income - preferred dividends)/number of shares of outstanding common stock.

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Definitions:

Completed Contract

A method in accounting where all revenue and expenses of a contract are recognized only when the contract is completed.

Percentage Of Completion

An accounting method that recognizes revenues and expenses of long-term projects as a percentage of the work completed during the period.

Inventory

Goods or materials that a business holds for the ultimate goal of resale, including raw materials, work-in-progress, and finished goods.

Cost

The value of the financial resources expended to acquire or produce a product or service.