A). The book value per share of stock is the amount of money an investor would have to pay to purchase a share of stock in an open market. This statement is true or false?

B).The following information was drawn from the accounting records of Kerry Company.

Net income	$	200,000
Preferred stock outstanding, 8% cumulative	$	40,000
Market price per share of common stock	$	10.00
Total Stockholders Equity	$	1,240,000
Average number of common shares outstanding		100,000	shares
Dividends per share on common stock	$	0.50	per share

Based on this information the company's dividend yield on its common stock is

Multiple Choice

a. 12%.

b. 10%.

c. 2%.

d. 5%.