Dividend yield ratio measures Income available for common stockholders on a per share basis Profit earned by a firm through the use of capital supplied by stockholders Proportion of a corporation’s profits that are returned to the stockholders immediately as dividends Rate at which dividends provide a return to stockholders

Question

With its earnings, a firm has a decision to make about whether to pay common dividends or a. pay depreciation expense on its fixed assets b. pay preferred dividends c. pay interest to bondholders d. reinvest for future growth On the income statement, interest expense is a. after-tax b. tax-deductible preferred dividents are a. tax-deductible b. after-tax and common dividends are a. after-tax b. tax-deductible Wages are considered a(n) a. an interest expense b. a depreciation expense c. a cost of good sold d. a research and development expense e. an operating expense A company usually expenses ( ) when it incurs them, because the future benefits that this spending is expected to bring are very uncertain and difficult to time. a. a depreciation expense b. an interest expense c. a cost of goods sold d. an operating expense e. a research and development expense

Answer 1

Question

Chapter 12, Problem 36MCQ

To determine

Dividend yield ratio measures

Income available for common stockholders on a per share basis

Profit earned by a firm through the use of capital supplied by stockholders

Proportion of a corporation’s profits that are returned to the stockholders immediately as dividends

Rate at which dividends provide a return to stockholders

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