The Amount of Annual Cash Dividends Distributed to Common Shareholders

question 144

Multiple Choice

The amount of annual cash dividends distributed to common shareholders relative to the common stock's market value is the:

• A)Dividend payout ratio.
• B)Dividend yield.
• C)Price-earnings ratio.
• D)Current yield.
• E)Earnings per share.

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Definitions:

Per Unit

A term used to describe the measurement or pricing of something in individual units or on a per-item basis.

FICA

Federal Insurance Contributions Act, a U.S. law requiring a deduction from employees’ paychecks and employer contributions to fund Social Security and Medicare.

Economic Analysis

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving specific objectives.

Workers Pay

The compensation, including wages, salaries, and benefits, that an employee receives from an employer in exchange for their labor.