Which of the following statements is incorrect?
A) Dividend yield measures the rate of return on the market price of a share.
B) Dividend yield is an important ratio for an investor who is acquiring shares mainly for income.
C) The dividend payout ratio measures the percentage of profit paid out in dividends to ordinary shareholders.
D) Dividend per share is the ratio to use when comparing income from shares with income from alternative investments.

Question

Quizplus · Accepted Answer

Dividend per share is not a ratio, it is an absolute amount that represents the dividend paid out per share. Therefore, it cannot be used for comparing income from shares with income from alternative investments, making statement D incorrect.

Which of the Following Statements Is Incorrect