Dividend Yield Is Calculated by Dividing

question 130

Multiple Choice

Dividend yield is calculated by dividing

• A) the market price of one share of stock by the annual dividend per share.
• B) the annual dividend per share by the market price of one share of stock.
• C) earnings per share by market price per share.
• D) annual dividend per share by earnings per share.

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Definitions:

Stockout Cost

The financial impact associated with running out of stock, including lost sales, backorder processing, and customer dissatisfaction.

Inventory Holding Cost

The expenses associated with storing unsold goods, including warehousing, insurance, and spoilage costs.

Yield Management Principles

Strategies used in revenue management to adjust prices and inventory in response to demand, in order to maximize revenue or yield.

Sales Price

The amount of money charged for a product or service, or the value that customers are willing to pay.