Cadarette Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $40 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $17.73 per share.
-The dividend yield ratio for Year 2 is closest to:
A)2.26%
B)2.82%
C)80.00%
D)0.56%

Question

Cadarette Corporation's most recent balance sheet and income statement appear below:    Dividends on common stock during Year 2 totaled $40 thousand. Dividends on preferred  stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $17.73 per share.
-The dividend yield ratio for Year 2 is closest to:
A)2.26% 
B)2.82% 
C)80.00% 
D)0.56%

Quizplus · Accepted Answer

Number of common shares outstanding = Common stock F1F1F1S1F1F1F10 Par value
= $100 F1F1F1S1F1F1F10 $1 per share = 100 shares
Dividends per share = Common dividends F1F1F1S1F1F1F10 Common shares
= $40 F1F1F1S1F1F1F10 100 shares = $0.40 per share
Dividend yield ratio = Dividends per share F1F1F1S1F1F1F10 Market price per share
= $0.40 F1F1F1S1F1F1F10 $17.73 = 2.26%

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