Ratio Analysis}

Mojo Inc. has the following shareholders' equity section of the statement of financial position:

On this date Mojo's shares were selling for \(\$ 25\) per share.
\section*{Required:}
1. Assuming Mojo's dividend yield is \(1 \%\), what are the dividends per common share?
2. Assuming Mojo's dividend yield is \(1 \%\) and its dividend payout is \(20 \%\), what is Mojo's net income?

Exercise

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Mojo Inc. Statement of Financial Position (Partial) Shareholders' equity: Preferred shares, unlimited shares authorized; 30,000 issued and outstanding Common shares, unlimited shares authorized; 550,000 issued and outstanding Contributed surplus: Preferred shares $ 300,000 5,200,000 90,000 Total share capital 5,590,000 Retained earnings 450,000 Accumulated other comprehensive income 22,000 Total shareholders' equity $6,062,000