Asked by
Camryn Powell
on Oct 15, 2024
Verified
Dividend yield is defined as the annual cash dividends per share divided by the market price per share of a company's stock.
Dividend Yield
A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price, often used by investors to assess the income-generating ability of a stock.
Market Price
The current price at which a good or service can be bought or sold in the open market.
- Acquire knowledge of how dividends are treated in accounting, specifically cash dividends and their influence on retained earnings.
- Analyze the significance of financial ratios, such as dividend yield and price-earnings ratio, in evaluating company performance.
Verified Answer
DS
Learning Objectives
- Acquire knowledge of how dividends are treated in accounting, specifically cash dividends and their influence on retained earnings.
- Analyze the significance of financial ratios, such as dividend yield and price-earnings ratio, in evaluating company performance.