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Given the following information, which company's stockholders received the highest return in the form of dividends?

Company W Company X Company Y Company Z
Earnings per share $4.35 $4.75 $4.20 $5.25
Price-earnings ratio 25.1 17.2 18.3 22.0
Dividend yield 3.0% 3.2% 0.0% 2.8%

a. Company Z
b. Company W
c. Company Y
d. Company X

User Audience
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1 Answer

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Final answer:

Company X had the highest dividend yield at 3.2%, which means its stockholders received the highest return in the form of dividends among the given companies.

Step-by-step explanation:

The student is asking which company's stockholders received the highest return in the form of dividends among Companies W, X, Y, and Z, based on the provided data such as earnings per share, price-earnings ratio, and dividend yield.

The dividend yield can be used to determine this because it represents the percentage of a company's stock price that is paid back to shareholders as dividends.

To calculate which company provided the highest dividend return, we look for the highest dividend yield percentage since this directly indicates the rate of return investors receive from dividends relative to the stock price.

In this scenario, Company X had the highest dividend yield at 3.2%, and therefore, stockholders of Company X received the highest return in form of dividends. So, the correct answer is (d) Company X.

User Sudhakar MNSR
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