The Yield of a Stock Is the

question 18

Multiple Choice

The yield of a stock is the

• A) dividend divided by the closing price per share.
• B) dividend divided by the average daily price of the stock.
• C) closing price divided by the 52-week low price.
• D) dividend divided by the opening price per share.

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Definitions:

AASB 107/IAS 7

Accounting standards that set out the requirements for entities to present statements of cash flows, classifying cash flows during the period from operating, investing, and financing activities.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, categorizing cash activities into operating, investing, and financing activities.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Financing Activity

Transactions and events where cash is raised from creditors and investors to fund the company’s operations and expansions.