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The following information is available for Meyer Company: Dividends per share of common stock $1.80 Market price per share of common stock $30.00 Which of the following statements is correct? a.The dividend yield is 16.7%, which is an important measure of solvency. b.The dividend yield is 16.7%, which is of interest to bondholders. c.The dividend yield is 6.0%, which is of special interest to investors seeking to earn revenue on their investments. d.The dividend yield is 6.0%, which is of interest to investors seeking an increase in market price of their stocks.

Respuesta :

Answer:

Option (c) is correct.

Explanation:

Given that,

Dividends per share of common stock = $1.80

Market price per share of common stock = $30.00

Dividend yield:

= Dividends per share of common stock ÷ Market price

= $1.80 ÷ $30.00

= 6%

Therefore, the dividend yield is 6.0%, which is of special interest to investors seeking to earn revenue on their investments.