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

Question

Quizplus · Accepted Answer

Dividend per share is not a ratio but a measure of the total amount of dividends paid to shareholders per share of stock. It cannot be used for comparing income from shares with income from alternative investments, unlike dividend yield.

Which Statement Is Incorrect