Asked by Charles Griffey on Jul 12, 2024

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Dividend yield is computed by dividing earnings per share by the market value per share.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price, serving as a measure of return on investment.

Earnings Per Share

A financial ratio that calculates the portion of a company’s profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Market Value

The present cost at which a good or service is available for purchase or sale in the market.

  • Investigate the significance of financial ratios, notably dividend yield and price-earnings ratio, in the evaluation of company performance.
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AA
Anand AggarwalJul 17, 2024
Final Answer :
False
Explanation :
Dividend yield is computed by dividing the annual dividend per share by the market value per share.