A retired investor who buys common shares to earn dividend income rather than for price appreciation is
Question:
A retired investor who buys common shares to earn dividend income rather than for price appreciation is about to buy the shares of Company A because its dividend yield is much higher than the yield offered on Company B shares. Should the investor make this decision by looking solely at the dividend yield ratio? Explain why or why not.
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Making a decision to buy shares based on a single ratio the dividend yield ratio is not recommend...View the full answer
Answered By
Jonas Araujo
I have recently received the degree of PhD. In Physics by the Universidade Federal do Maranhão after spending a term in Durham University, as I have been awarded a scholarship from a Brazilian mobility program. During my PhD. I have performed research mainly in Theoretical Physics and published works in distinguished Journals (check my ORCID: https://orcid.org/0000-0002-4324-1184).
During my BSc. I have been awarded a scholarship to study for a year in the University of Evansville, where I have worked in detection-analysis of photon correlations in the the Photonics Laboratory. There I was a tutor in Electromagnetism, Classical Mechanics and Calculus for most of that year (2012).
I am very dedicated, honest and a fast learner, but most of all, I value a job well done.
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8th Canadian Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
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