Return on Common Stockholders’ Equity, Dividend Yield, and Dividend Payout The following information relates to Menlo, Inc.: Previous Year Current Year Net income $125,000 $200,000 Preferred stock dividends 15,000 18,000 Average common stockholders’ equity 5,000,000 4,200,000 Dividend per common share 2.80 3.00 Earnings per share 5.80 6.00 Market price per common share, year-end 60.00 59.50 a. Calculate the company’s return on common stockholders’ equity for each year.b. Calculate the company’s dividend yield for each year.c. Calculate the company’s dividend payout for each year. Round answers to one decimal point. Previous Year Current Year a. Return on Common Stockholder Equity Answer Answer b. Dividend Yield Answer Answer c. Dividend Payout Answer Answer
Return on Common Stockholders’ Equity, Dividend Yield, and Dividend Payout The following information relates to Menlo, Inc.: Previous Year Current Year Net income $125,000 $200,000 Preferred stock dividends 15,000 18,000 Average common stockholders’ equity 5,000,000 4,200,000 Dividend per common share 2.80 3.00 Earnings per share 5.80 6.00 Market price per common share, year-end 60.00 59.50 a. Calculate the company’s return on common stockholders’ equity for each year.b. Calculate the company’s dividend yield for each year.c. Calculate the company’s dividend payout for each year. Round answers to one decimal point. Previous Year Current Year a. Return on Common Stockholder Equity Answer Answer b. Dividend Yield Answer Answer c. Dividend Payout Answer Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Return on Common Stockholders’ Equity, Dividend Yield, and Dividend Payout
The following information relates to Menlo, Inc.:
| Previous Year | Current Year | |
|---|---|---|
| Net income | $125,000 | $200,000 |
| 15,000 | 18,000 | |
| Average common stockholders’ equity | 5,000,000 | 4,200,000 |
| Dividend per common share | 2.80 | 3.00 |
| Earnings per share | 5.80 | 6.00 |
| Market price per common share, year-end | 60.00 | 59.50 |
a. Calculate the company’s return on common stockholders’ equity for each year.
b. Calculate the company’s dividend yield for each year.
c. Calculate the company’s dividend payout for each year.
Round answers to one decimal point.
| Previous Year | Current Year | ||
|---|---|---|---|
| a. | Return on Common |
Answer | Answer |
| b. | Dividend Yield | Answer | Answer |
| c. | Dividend Payout | Answer | Answer |
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