Chapter 15, Problem 15.26EX

(a)

To determine

Dividend yield: This is the ratio which measures the amount of dividends paid relative to the market price.

Formula for dividend yield:

$\text{Dividend yield = }\frac{\text{Dividend price per share of common stock}}{\text{Market price per share of common stock}}$

The dividend yield for Corporation M, for current and previous years

(b)

To determine

To explain: The changes in dividend yield.