Dividend Yield Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $96,250 $154,000 Preferred stock dividends 8,250 8,400 Average common stockholders' equity 3,360,000 4,125,000 Dividend per common share 3.36 3.30 Earnings per share 5.23 5.74 Market price per common share, year-end 53.60 58.80 Calculate the common stock dividend yield for Los Altos, Inc. for both years. Round to one decimal. Year 1 Year 2 Common stock dividend yield % % Did the dividend yield improve from Year 1 to Year 2?
Dividend Yield Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $96,250 $154,000 Preferred stock dividends 8,250 8,400 Average common stockholders' equity 3,360,000 4,125,000 Dividend per common share 3.36 3.30 Earnings per share 5.23 5.74 Market price per common share, year-end 53.60 58.80 Calculate the common stock dividend yield for Los Altos, Inc. for both years. Round to one decimal. Year 1 Year 2 Common stock dividend yield % % Did the dividend yield improve from Year 1 to Year 2?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Dividend Yield
Los Altos, Inc., disclosed the following information in a recent annual report:
Year 1
Year 2
Net income
$96,250 $154,000
Preferred stock dividends
8,250
8,400
Average common stockholders' equity
3,360,000 4,125,000
Dividend per common share
3.36
3.30
Earnings per share
5.23
5.74
Market price per common share, year-end
53.60
58.80
Calculate the common stock dividend yield for Los Altos, Inc. for both years.
Round to one decimal.
Year 1
Year 2
Common stock dividend yield
%
%
Did the dividend yield improve from Year 1 to Year 2?
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