Advanced Higher Business Management Practice Questions - Advanced Higher Business Management (Qualifications Scotland SCQF Level 7) Exam

Dividend Yield measures the cash return on investment relative to share price, whereas Dividend Cover measures how many times net profit covers the total dividend payment. Dividend Yield calculates net profit divided by share price, whereas Dividend Cover calculates retained earnings divided by revenue. Dividend Yield indicates debt leverage, whereas Dividend Cover indicates short-term acid-test liquidity. Dividend Yield shows total capital growth, whereas Dividend Cover shows annual gross profit margin.