The capital gain is 9% and the return to stockholder is 18% then the periodic payments of dividends are __________?
Correct answer: D. 0.09
- A. 0.18
- B. 0.27
- C. 0.25
- D. 0.09
Explanation
Total stock return equals capital gain plus dividend yield, so the dividend return is 18% minus 9%, or 9%. The decimal form is 0.09.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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