A Company Reports Basic Earnings Per Share of $3

question 125

True/False

A company reports basic earnings per share of $3.50, cash dividends per share of $0.75, and a market price per share of $64.75. The company's dividend yield equals 21.4%.
Dividend yield = cash dividend per share/market price per share
$0.75/$64.75 = 1.16%

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Definitions:

Life Insurance Premiums

The payments made to an insurance company to provide a death benefit to beneficiaries upon the policyholder's death.

Life Span

The length of time an individual, organism, or product exists or is expected to exist.

Annual Premiums

Regular payments made on a yearly basis for insurance coverage.

Expected NPV

The anticipated net present value of a project, investment, or financial strategy, calculated by integrating all possible outcomes weighted by their probabilities.