The Zolo Co

Multiple Choice

The Zolo Co. just declared that they are increasing their annual dividend from $1.00 per share to $1.25 per share. If the stock price remains constant, then:

A) The capital gains yield will decrease.
B) The capital gains yield will increase.
C) The dividend yield will increase.
D) The dividend yield will also remain constant.
E) Neither the capital gains yield nor the dividend yield will change.