The following information is available for Meyer Company: $$\begin{array} { l r }
\text { Dividends per share of common stock } & \$ 1.80 \
\text { Market price per share of common stock } & \$ 30.00
\end{array}$$
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: $$\begin{array} { l r } 
\text { Dividends per share of common stock } & \$ 1.80 \
\text { Market price per share of common stock } & \$ 30.00
\end{array}$$ 
 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

The dividend yield is calculated as (Dividends per share / Market price per share) * 100. Using the given values, (1.80 / 30.00) * 100 = 6.0%. This yield is of interest to investors seeking to earn revenue through dividends, not necessarily those focused on capital gains or solvency.

The Following Information Is Available for Meyer Company Which of the Following Statements Is Correct? A) the Dividend

The Following Information Is Available for Meyer Company Which of the Following Statements Is Correct?
A) the Dividend