Which of the statements is NOT TRUE about the yield of a stock? a) It is comprised of dividend yield + capital gains yield b) Dividend yield is equal to dividend per share divided by the purchase price of the stock c) Capital gains yield is the increase in the price of the stock d) Capital gains yield is the increase in price with respect to the purchase price divided by the purchase price

Which of the statements is NOT TRUE about the yield of a stock? a) It is comprised of dividend yield + capital gains yield b) Dividend yield is equal to dividend per share divided by the purchase price of the stock c) Capital gains yield is the increase in the price of the stock d) Capital gains yield is the increase in price with respect to the purchase price divided by the purchase price

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 7DQ

See similar textbooks

Similar questions

For the following stock investment, find (a) the total purchase price, (b) the total dividend amount, (c) the capital gain or loss, (d) the total return, and (e) the percentage return. Ignore broker and SEC fees. (a) What is the total purchase price? $ (b) What is the total dividend amount? (c) What is the capital gain or loss? (d) What is the total return on investment? (e) What is the percentage return? (Round to the nearest percent.) Number of shares Purchase price per share Dividend per share Sale price per share 70 $40 $2 $82
A stock's capital gains are equal to its dividend divided by the stock price. OA. True OB. False
In the general dividend-valuation model, the price of a share of stock is the present value of all expected future dividends. True False
The cost of preferred stock: a. is equal to the dividend yield b. is independent of the stock's price c. is equal to the YTM d. depends on dividend's growth rate
TRUE OR FLASE the dividend payout ratio is the dividend by the stock price
The expected return on a stock is called the __ from the investor's perspective, and the __ from the company's perspective. A. required return; cost of equity B. required return; cost of capital C. excess return; cost of equity D. excess return; cost of capital
The dividend yield rate is equal to the dividends per share divided by the par value per share of common stock. Group of answer choices True False
When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited?Required to answer. Single choice. a. Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value b. Treasury stock for the purchase price c. Treasury stock for the par value and paid-in capital in excess of par for the excess of the purchase price over the par value d. Paid-in capital in excess of par for the purchase price
How is the realised percentage return from investing in a share calculated? A. The cash flows received from the share divided by the price paid for the share. B. Dividends received plus the difference between the selling price and the purchase price, divided by the purchase price. C. The price paid for the share divided by the selling price. D. Both (b) and (c)
When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited? * Treasury stock for the par value and paid-in capital in excess of par for the excess of the purchase price over the par value. Paid-in capital in excess of par for the purchase price. Treasury stock for the purchase price. Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value. When a share split occurs, the aggregate par value of issued shares will change. * True False
What does the additional paid-in capital account represent?a) The difference between the par and the stated value of common stock.b) The price changes that result for stock trading subsequent to its original issue.c) The market price of all common stock issued.d) The amount by which the original sales price of stock exceeds the par value.
The required rate of return on a stock consists of two components, dividend growth rate on the stock measures which of the one component Capital gains yield Dividend yield Market growth rate Discount rate