In 2014, W Co had a dividend yield ratio of 0.3% and J.C. Co. reported a yield
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Question:
In 2014, W Co had a dividend yield ratio of 0.3% and J.C. Co. reported a yield of 6.9%. What is the most likely reason for W Co.'s relatively low dividend yield in comparison to J.C. Co.'s ratio?
A. W Co is paying little in dividends because it continues to grow through the expansion of store locations financed by operations.
B. W Co does not generate sufficient cash from operations to be able to pay a dividend
C. W Co does not generate sufficient operating profit to support declaring a dividend.
D. W Co does not have sufficient retained earnings to support declaring a dividend
Related Book For
Business Law Text and Cases
ISBN: 978-1337374491
14th edition
Authors: Kenneth W. Clarkson, Roger Miller, Frank B. Cross
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