Corporate owners earn a returnO through interest earnings and earnings per shareO by realizing gains through increases in share price and cash dividendsthrough capital appreciation and retained earningsO by realizing gains through increases in share price and interest earnings

Corporate owners earn a return by realizing gains through increases in share price and cash…

Corporate owners earn a return O through interest earnings and earnings per share O by realizing gains through increases in share price and cash dividends O through capital appreciation and retained earnings O by realizing gains through increases in share price and interest earnings

Corporate owners earn a return O through interest earnings and earnings per share O by realizing gains through increases in share price and cash dividends O through capital appreciation and retained earnings O by realizing gains through increases in share price and interest earnings

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 2BIC

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

Corporate owners earn a return
O through interest earnings and earnings per share
O by realizing gains through increases in share price and cash dividends
through capital appreciation and retained earnings
O by realizing gains through increases in share price and interest earnings

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