The following information is available for Meyer Company: Which of the following statements is correct?
A)The dividend yield is 6.0%, which is of interest to investors seeking an increase in market price of their stocks.
B)The dividend yield is 6.0%, which is of special interest to investors seeking to earn revenue on their investments.
C)The dividend yield is 16.7%, which is of interest to bondholders.
D)The dividend yield is 16.7%, which is an important measure of solvency.

Question

The following information is available for Meyer Company:​  Which of the following statements is correct?
A)The dividend yield is 6.0%, which is of interest to investors seeking an increase in market price of their stocks. 
B)The dividend yield is 6.0%, which is of special interest to investors seeking to earn revenue on their investments. 
C)The dividend yield is 16.7%, which is of interest to bondholders. 
D)The dividend yield is 16.7%, which is an important measure of solvency.

Quizplus · Accepted Answer

Dividend yield refers to the percentage of a company's stock price that is paid out as dividends to its shareholders. A high dividend yield is of special interest to investors seeking to earn revenue on their investments. Choice A is incorrect as it suggests that investors seeking an increase in market price of their stocks would be interested in dividend yield, which is incorrect. Choice C is incorrect as dividend yield is not of interest to bondholders who are more concerned with the company's ability to pay interest on its bonds. Choice D is incorrect as dividend yield is not a measure of solvency but rather a measure of the return on investment for shareholders.

The Following Information Is Available for Meyer Company:​ Which

The Following Information Is Available for Meyer Company: Which