The Dividend Yield Is Computed by Dividing

question 70

Multiple Choice

The dividend yield is computed by dividing:

• A)Cash dividends per share by earnings per share
• B)Earnings per share by cash dividends per share
• C)Cash dividends per share by the market price per share
• D)Market price per share by cash dividends per share
• E)Cash dividends per share by retained earnings

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Definitions:

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Nominal Exchange Rate

The price of one currency in terms of another, not adjusted for inflation differences between the countries.

Price Level

The price level represents the average of the current prices of goods and services in an economy, often measured by a price index.

Domestic Prices

The cost of goods and services within a country's borders, influenced by local demand, supply, taxes, and subsidies.