Answers to both.

Earnings per share is $1.00 and the company payout ratio is 25%. If the company stock is selling for $12.50 per share, what is the dividend yield? Select one: a. 14.0% b. 12.0% c. 2.0% d. 8.0% e. 6.5% Which one of the following statements is correct? Select one: a. Corporate investors tend to prefer low dividend payouts on securities they own b. Flotation costs are a good reason to support a high dividend payout c. Dividends are irrelevant d. Dividend policy is the time pattern of dividend payout e. Current tax laws favor high current dividends for individual investors