Multiple Choice
In 20X4, W Co had a dividend yield ratio of 0.3% and J.C. Co. reported a yield of 6.9%. What is the most likely reason for W Co's relatively low dividend yield in comparison to J.C. Co 's ratio?
A) W Co is paying little in dividends because it continues to grow through expansion of store locations financed by operations.
B) W Co does not generate sufficient cash from operations to be able to pay a dividend.
C) W Co does not generate sufficient operating profit to support declaring a dividend.
D) W Co does not have sufficient retained earnings to support declaring a dividend.
Correct Answer:
Verified
Correct Answer:
Verified
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