Which of the Following Statements Is Incorrect

question 35

Multiple Choice

Which of the following statements is incorrect?

• A) Dividend yield measures the rate of return on the market price of a share.
• B) Dividend yield is an important ratio for an investor who is acquiring shares mainly for income.
• C) The dividend payout ratio measures the percentage of profit paid out in dividends to ordinary shareholders.
• D) Dividend per share is the ratio to use when comparing income from shares with income from alternative investments.

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Definitions:

Formal Contracts

Formal contracts are legally binding agreements that require a specific form or method of creation to be enforceable.

Uniform Commercial Code (UCC)

An extensive collection of regulations that oversee every commercial activity within the United States, designed to standardize sales laws and other business dealings throughout the states.

Federal Law

Legislation created by the national government of a country, applicable to all its constituents.

Consideration

Something of value exchanged between parties in a contract, serving as the incentive or reason for each party to enter into the agreement.