Answered: The dividend yield of Suburban Propane…

The dividend yield of Suburban Propane was 10.2% in a recent year, and the dividend yield of Google was 0% in the same year. What might explainthe difference between these ratios?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

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The dividend yield of Suburban Propane was 10.2% in a recent year, and the dividend yield of Google was 0% in the same year. What might explain
the difference between these ratios?

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