Dividend Yield Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $47,250 $72,600 Preferred stock dividends 4,050 3,960 Average common stockholders’ equity 1,584,000 2,025,000 Dividend per common share 1.58 1.62 Earnings per share 2.57 2.71 Market price per common share, year-end 26.30 27.70 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? Answer
Dividend Yield Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $47,250 $72,600 Preferred stock dividends 4,050 3,960 Average common stockholders’ equity 1,584,000 2,025,000 Dividend per common share 1.58 1.62 Earnings per share 2.57 2.71 Market price per common share, year-end 26.30 27.70 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? Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dividend Yield
Los Altos, Inc., disclosed the following information in a recent annual report:
| Year 1 | Year 2 | |
|---|---|---|
| Net income | $47,250 | $72,600 |
| 4,050 | 3,960 | |
| Average common |
1,584,000 | 2,025,000 |
| Dividend per common share | 1.58 | 1.62 |
| Earnings per share | 2.57 | 2.71 |
| Market price per common share, year-end | 26.30 | 27.70 |
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? Answer
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