Dividends received divided by the initial share price gives the:
ADividend yield
BDebt ratio
CPayout ratio
DPrice ratio
Answer & Solution
Correct answer: A. Dividend yield
1. Dividends sit on top.
2. The starting price sits below.
3. It is the dividend yield.
_Source: OpenStax Principles of Finance 2e, Chapter 15, How to Think about Investing._
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