Which one of the following ratios helps to indicate a company's effectiveness in meeting the stockholder profitability objectives?
A)profit margin
B)acid-test
C)dividend yield
D)inventory turnover

Question

Quizplus · Accepted Answer

Dividend yield is the ratio of the annual dividend per share to the current market price per share. It indicates the percentage return on investment that stockholders receive in the form of dividends. Therefore, a high dividend yield indicates that the company is effectively meeting stockholder profitability objectives.

Which One of the Following Ratios Helps to Indicate a Company's