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Which of the Following Is False About the Dividend Yield

Question 54

Multiple Choice

Which of the following is false about the dividend yield ratio?


A) High growth companies tend to have lower dividend yield ratios.
B) It measures the rate of return a shareholder earned from dividends during the year.
C) A low dividend yield, by itself, is neither bad nor good.
D) Dividend yield ratio = Market price per share ÷ Dividends per share.

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