Which of the following statements is correct?
A)The dividend yield and earnings per share both have the same denominator.
B)The dividend yield and earnings per share both have the same numerator.
C)Dividends per share are used in calculation of both earnings per share and dividend yield.
D)Net income is used in the calculation of earnings per share but not in the calculation of dividend yield.

Question

Quizplus · Accepted Answer

Earnings per share equal net income divided by the average number of common shares outstanding. Dividend yield equals dividends per share divided by market price per share.

Which of the Following Statements Is Correct