Because of its relationship to dividends and market price, which of the following ratios is most important to investors?
A)current ratio
B)debt-to-equity ratio
C)dividend yield ratio
D)asset turnover ratio

Question

Quizplus · Accepted Answer

The dividend yield ratio is the most important ratio to investors because it measures how much a company pays out in dividends relative to its stock price. This directly affects the return on investment for shareholders. A higher dividend yield ratio indicates higher returns for investors, making it an important metric for those looking for income from their investments. The other ratios listed do not necessarily relate directly to dividend payments or market price.

Because of Its Relationship to Dividends and Market Price, Which