Dividend yield on common stock is calculated as
a.dividends per share of common stock, divided by earnings per share
b.net income minus preferred dividends, divided by shares of common stock outstanding
c.dividends per share of common stock, divided by market price per share of common stock
d.dividends on common stock, divided by shares of common stock outstanding

Respuesta :

Answer:

C. dividends per share of common stock, divided by market price per share of common stock

Explanation:

Dividend yield is the return of company's total dividend compared to its shared price.

A. This is known as the payout ratio and is expressed as dividends per share of common stock, divided by earnings per share.

B. This is known as earning per share of a company and is expressed as net income minus preferred dividends, divided by shares of common stock outstanding.

D. This is known as earning per share of a company if the company does not pay preferred dividends and is expressed as dividends on common stock, divided by shares of common stock outstanding.