Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $105,000 $176,000 Preferred stock dividends 9,000 9,600 Average common stockholders' equity 3,840,000 4,500,000 Dividend per common share 3.84 3.60 Earnings per share 5.70 6.56 Market price per common share, year-end 58.50 67.20 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 0 % 0 % Did the dividend yield improve from Year 1 to Year 2?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Los Altos, Inc., disclosed the following information in a recent annual report:
Year 1
Year 2
Net income
$105,000 $176,000
Preferred stock dividends
9,000
9,600
Average common stockholders' equity
3,840,000 4,500,000
Dividend per common share
3.84
3.60
Earnings per share
5.70
6.56
Market price per common share, year-end
58.50
67.20
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
0 %
0 %
Did the dividend yield improve from Year 1 to Year 2?
Transcribed Image Text:Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $105,000 $176,000 Preferred stock dividends 9,000 9,600 Average common stockholders' equity 3,840,000 4,500,000 Dividend per common share 3.84 3.60 Earnings per share 5.70 6.56 Market price per common share, year-end 58.50 67.20 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 0 % 0 % Did the dividend yield improve from Year 1 to Year 2?
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