A company has paid a dividend every quarter for the past 20 years. If the stock's price has fallen dramatically over the past quarter, but the dividend has remained the same, it may be concluded that:

A company has paid a dividend every quarter for the past 20 years. If the stock's price has fallen dramatically over the past quarter, but the dividend has remained the same, it may be concluded that:


A) current dividend yield has increased.

B) current dividend yield has decreased.

C) current dividend yield has remained the same.

D) dividend yield to maturity has decreased.


Answer: A) current dividend yield has increased.


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