Polk Corporation reported the following information related to its common stock (par $10) outstanding and net income: $$\begin{array} { l r }
\text { Total stockholders' equity (no preferred stock) } & \$ 125,000 \
\text { Current market price per share of common stock } & \$ 40.00 \
\text { Dividends declared and paid during 2015 } & \$ 10,000 \
\text { Balance in the common stock account } & \$ 40,000 \
\text { Net income } & \$ 35,000
\end{array}$$ Required:
Calculate each of the following ratios. Round your answers to two decimal places.
A. Price/earnings ratio
B. Dividend yield

Question

Polk Corporation reported the following information related to its common stock (par $10) outstanding and net income: $$\begin{array} { l r } 
\text { Total stockholders' equity (no preferred stock) } & \$ 125,000 \
\text { Current market price per share of common stock } & \$ 40.00 \
\text { Dividends declared and paid during 2015 } & \$ 10,000 \
\text { Balance in the common stock account } & \$ 40,000 \
\text { Net income } & \$ 35,000
\end{array}$$ Required:
Calculate each of the following ratios. Round your answers to two decimal places. 
A. Price/earnings ratio
B. Dividend yield

Quizplus · Accepted Answer

The Answer of Polk Corporation reported the following information related to its common stock (par $10) outstanding and net income: $$\begin{array} { l r } 
\text { Total stockholders' equity (no preferred stock) } & \$ 125,000 \
\text { Current market price per share of common stock } & \$ 40.00 \
\text { Dividends declared and paid during 2015 } & \$ 10,000 \
\text { Balance in the common stock account } & \$ 40,000 \
\text { Net income } & \$ 35,000
\end{array}$$ Required:
Calculate each of the following ratios. Round your answers to two decimal places. 
A. Price/earnings ratio
B. Dividend yield

Polk Corporation Reported the Following Information Related to Its Common