The Zolo Co

question 53

Multiple Choice

The Zolo Co.just declared that it is increasing its annual dividend from $1.00 per share to $1.25 per share.If the stock price remains constant, then:

• A)the capital gains yield will decrease.
• B)the capital gains yield will increase.
• C)the dividend yield will increase.
• D)the dividend yield will also remain constant.
• E)neither the capital gains yield nor the dividend yield will change.

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Definitions:

Payroll Records

Documents that detail the compensation paid to employees, including wages, salaries, bonuses, and deductions.

Fiscal Year

A one-year period that companies use for financial reporting and budgeting, which may not align with the calendar year.

Depreciation Expense

The process of distributing the financial burden of a tangible asset over its life expectancy.

General Journal Entry

A General Journal Entry is a record of financial transactions in the general ledger, detailing the accounts affected, amounts, and dates, serving as the first step in the accounting cycle.