Assume a company provided the following information:

Net income	$	60,000
Number of common shares outstanding, beginning of the year		45,000
Number of common shares outstanding, end of the year		55,000
Market price per share	$	14.75
Dividends per share	$	0.50
Total assets, end of the year	$	200,000
Total liabilities, end of the year	$	80,000

The dividend yield ratio is closest to:

Multiple Choice

• 5.5%.

• 41.7%.

• 3.4%.

• 6.8%.

• Assume a company provided the following information:

  Net income	$	48,000
  Number of common shares outstanding, beginning of the year		45,000
  Number of common shares outstanding, end of the year		55,000
  Market price per share	$	15
  Dividends per share	$	0.50
  Total assets, end of the year	$	200,000
  Total liabilities, end of the year	$	80,000

  The price-earnings ratio is closest to:

  Multiple Choice

• 15.63.

• 14.63.

• 12.63.

• 13.63.