Commons, Inc. provides the following information for 2018: Net income$ 38 comma 000$38,000Market price per share of common stock$ 18.00$18.00/shareDividends paid$ 0.85$0.85/shareCommon stock outstanding at Jan. 1, 2018120 comma 000120,000 sharesCommon stock outstanding at Dec. 31, 2018170 comma 000170,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. (Round your answer to two decimal places.)A.4.964.96% B.3.283.28% C.4.724.72% D.1.441.44%

Dividend Yield refers to the dividend per share divided by price per share. It shows total income…

Answered: Commons, Inc. provides the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Commons, Inc. provides the following information for 2018:

Net income	$ 38 comma 000$38,000
Market price per share of common stock	$ 18.00$18.00/share
Dividends paid	$ 0.85$0.85/share
Common stock outstanding at Jan. 1, 2018	120 comma 000120,000 shares
Common stock outstanding at Dec. 31, 2018	170 comma 000170,000 shares

The company has no preferred stock outstanding. Calculate the dividend yield for common stock. (Round your answer to two decimal places.)

4.964.96%

3.283.28%

4.724.72%

1.441.44%

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