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Based on the following information, calculate the dividend yield on common stock Market price per share $20.00 Earnings per share 4.00 Dividends per share 1.00

Based on the following information, calculate the dividend yield on common stock

Market price per share $20.00 Earnings per share 4.00 Dividends per share 1.00 Investor's cost per share 15.00

a. 0.033 b. 0.05 c. 0.20 d. 0.067

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A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of 10 %, $100 par, cumulative preferred stock, and 50,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per share dividends for each class of stock for each year by completing the schedule.

YEAR

DIVIDENDS

PREFERRED TOTAL

PREFERRED PER SHARE

COMMON TOTAL

COMMON PER SHARE

1

$30,000

2

$25,000

3

$60,000

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