Real World 9.3 shows that the average dividend yield for businesses in electricity supply is nearly four
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Real World 9.3 shows that the average dividend yield for businesses in electricity supply is nearly four times that of businesses in the industrial engineering sector. Why might this be the case?
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ARD Real World 9.3 Yielding dividends Investment ratios can vary significantly between businesses and between industries. To give some indication of the range of variations that occur, the average dividend yield ratios and average P/E ratios for listed businesses in twelve different industries are shown in Figures 9.3 and 9.4, respectively. 8 6 % 4 2 0 5.84 2.40 defence Aerospace and 2.01 Oil and gas producers Chemicals 1.91 ER MONEY MATTO 4.19 & biotechnology Pharmaceuticals Industrial engineering 5.17 Tobacco 2.69 Travel and leisure 3.19 3.24 Media General retailers 7.29 Electricity 3.62 Life assurance 2.46 3.78 Beverages liste for all SE businesses These dividend yield ratios are calculated from the current market value of the shares and the most recent year's dividend paid.
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The higher average dividend yield for businesses in the electricity supply sector compared to the industrial engineering sector could be attributed to ...View the full answer
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Financial Accounting For Decision Makers
ISBN: 9781292251257
9th Edition
Authors: Peter Atrill, Eddie McLaney
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