Polk Corporation reported the following information related to its common stock (par $10)outstanding and net income:
$$\begin{array} { l r }
\text { Total stockholders' equity (no preferred stock) } & \$ 125,000 \
\text { Current market price per share of common stock } & 40 \
\text { Dividends declared and paid during } 2011 & 10,000 \
\text { Balance in the common stock account } & 40,000 \
\text { Net income } & 35,000
\end{array}$$ Calculate each of the following ratios:
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:
 $$\begin{array} { l r } 
\text { Total stockholders' equity (no preferred stock) } & \$ 125,000 \
\text { Current market price per share of common stock } & 40 \
\text { Dividends declared and paid during } 2011 & 10,000 \
\text { Balance in the common stock account } & 40,000 \
\text { Net income } & 35,000
\end{array}$$ Calculate each of the following ratios:
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:
 $$\begin{array} { l r } 
\text { Total stockholders' equity (no preferred stock) } & \$ 125,000 \
\text { Current market price per share of common stock } & 40 \
\text { Dividends declared and paid during } 2011 & 10,000 \
\text { Balance in the common stock account } & 40,000 \
\text { Net income } & 35,000
\end{array}$$ Calculate each of the following ratios:
A.Price/earnings ratio
B.Dividend yield

Polk Corporation Reported the Following Information Related to Its Common