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Let's continue looking at the Market Prospects section of our Financial Ratios sheet (an attached file). We have already considered The Price-Earnings Ratio in the

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Let's continue looking at the Market Prospects section of our Financial Ratios sheet (an attached file). We have already considered The Price-Earnings Ratio in the two previous questions. Let's now look at the Dividend Yield Ratio as another indicator of the Market Prospects for our Home Depot Stock that our clients are looking to invest in. Notice on your Ratio sheet, Dividend Yield is calculated as: Annual Cash Dividends per Share/Market Price per Share. Once again, we will use the Market Price per Share of stock on the Fiscal Year End dates of 01/28/18 & 02/03/19, which are $193.97/share and $184.54, respectively. We now consult page #63/83 of our Home Depot Annual Report and find that in FY 2017, they paid $3.56 in Cash Dividends to their Shareholders. Likewise, page #63/83 shows Home Depot in FY 2018 paid $4.12/share in Cash Dividends to their Shareholders. Knowing this information, what Dividend Yield do you calculate for FY 2017 and for FY 2018 ? Also, what does Dividend Yield measure ? O A. 1.84% Dividend Yield in FY 2017 & 2.23% in FY 2018 O B. Dividend Yield measures Cash Return per Common Share. O C. 1.44% Dividend Yield in FY 2017 & 2.03% in FY 2018, O D. Dividend Yield measures Market Value relative to Earnings. O E Choices A & B are Correct O F. Choices C&D are Correct

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