Answer:
The dividend yield is 5%
Explanation:
For computing the dividend yield ratio, we have to use the formula pf dividend yield ratio which is shown below:
Dividend yield ratio = Annual dividend ÷ Stock market price
where,
The Annual dividend is $3.75
And, the stock price is $75
Now put these values to the above formula
So, the value would be equal to
= $3.75 ÷ $75
= 0.05
= 5%
Hence, the dividend yield is 5%
Answer:
The correct answer to the following question is option A) Discretionary accruals are items that management has full control over .
Explanation:
Non discretionary accruals can be described as those expenses ( that are obligatory in nature ) which are yet to be realized by the company but such expenses are already recorded in the books of accounts . Examples of such expenses can be like employees next month salaries.
Discretionary accruals can be described as those expenses ( that are non obligatory in nature ) which are yet to be realized by the company but such expenses are already recorded in the books of accounts . Example of such expenses are bonuses for the employees . These are such expenses on which management has full control ,as it not an obligation for a company to incurred such expenses.