Hartzog Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The dividend yield ratio for Year 2 is closest to:
A)0.36%
B)92.31%
C)4.26%
D)4.62%

Question

Hartzog Corporation's most recent balance sheet and income statement appear below:   Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The dividend yield ratio for Year 2 is closest to:
A)0.36% 
B)92.31% 
C)4.26% 
D)4.62%

Quizplus · Accepted Answer

Number of common shares outstanding = Common stock F1F1F1S1F1F1F10 Par value
= $400 F1F1F1S1F1F1F10 $2 per share = 200 shares
Dividends per share = Common dividends F1F1F1S1F1F1F10 Common shares
= $60 F1F1F1S1F1F1F10 200 shares = $0.30 per share
Dividend yield ratio = Dividends per share (see above)F1F1F1S1F1F1F10 Market price per share
= $0.30 F1F1F1S1F1F1F10 $7.04 = 4.26%

Hartzog Corporation's Most Recent Balance Sheet and Income Statement Appear