For the most recent fiscal period, ABC Company paid a regular quarterly dividend of P.20 per share and had earnings of P 3.20 per share. The market price of ABC stock at the end of the year was P 129.25 per share. ABCs dividend yield ratio was

FLEXIBLE BUDGETS

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

For the most recent fiscal period, ABC Company paid a regular quarterly dividend of P.20 per share and had earnings of P 3.20 per share. The market price of ABC stock at the end of the year was P 129.25 per share. ABC’s dividend yield ratio was

A	0.50%
B	10.00%
C	2.00%
D	6.25%

Explanation:

Detailed explanation-1: -The traditional calendar quarters that make up the year are: Dates for Q1: January 1 – March 31. Dates for Q2: April 1 – June 3. Dates for Q3: July 1 – September 30. Dates for Q4: October 1 – December 31.

Detailed explanation-2: -First quarter, Q1: 1 January – 31 March (90 days or 91 days in leap years) Second quarter, Q2: 1 April – 30 June (91 days) Third quarter, Q3: 1 July – 30 September (92 days) Fourth quarter, Q4: 1 October – 31 December (92 days)

Detailed explanation-3: -Dividend Yield = Dividend per share / Market value per share Where: Dividend per share is the company’s total annual dividend payment, divided by the total number of shares outstanding. Market value per share is the current share price of the company.

Detailed explanation-4: -With a constant dividend payout ratio policy, the amount of dividends paid to shareholders fluctuates directly in proportion to the earnings of a company.

There is 1 question to complete.

ECONOMICS

COST ACCOUNTING

FLEXIBLE BUDGETS