Question

which of the following would affect the dividend yield directly?
a) retention ratio
b) book value of ashare
c) face value of a share
d) cost of equity capital​

Answer 1

Answer:

retention ratio is the answer

Answer 2

Answer:

a) retention ratio is the correct alternative.

Explanation:

Dividend yield will be directly affected by the retention ratio. The retention ratio is the proportion of earnings kept back in the business as retained earnings. The retention ratio refers to the percentage of net income that is retained to grow the business, rather than being paid out as dividends.