Question: Valuation Ratios 21. A lower dividend yield is better. True or False 22. A higher dividend yield suggests a stock is less expensive, all else

Valuation Ratios

21. A lower dividend yield is better. True or False

22. A higher dividend yield suggests a stock is less expensive, all else equal. True or False

23. Traditionally, high dividend-yielding stocks are purchased by younger, employed investors. True or False

24. Tesla is not paying a dividend, since it just recently turned profitable and is investing heavily in new factories to meet demand for electric vehicles. True or False

25. The historic average S&P500 dividend yield is around 1%. True or False

26. The current average S&P500 dividend yield is greater than the historic average. True or False

27. A shift from using cash to pay dividends to using cash to repurchase shares has driven higher EPS and lower dividend yields. True or False

28. Free Cash Flow is Earnings Before Interest, Taxes and Depreciation/Amortization. True or False

29. Free Cash Flow is where the true value of the corporation originates. True or False

30. Free Cash Flow is available to pay dividends, repurchase shares, pay down debt, or purchase other companies. True or False

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