Asked by
Jermaine Williams
on Nov 12, 2024
Verified
The dividend yield ratio is calculated by dividing dividends paid by average total assets and the dividend payout ratio is calculated by dividends per share by earnings per share.
Dividend Yield Ratio
A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.
Dividend Payout Ratio
A financial ratio that measures the percentage of a company's net income that is distributed to shareholders as dividends.
Dividends Per Share
The dividend amount that a company pays out to its shareholders for each share owned.
- Understand and calculate key financial ratios from given financial statements.
- Compute dividend payments and comprehend their influence on equity of shareholders and net earnings.
Verified Answer
RA
Learning Objectives
- Understand and calculate key financial ratios from given financial statements.
- Compute dividend payments and comprehend their influence on equity of shareholders and net earnings.