Exercise 10-79 Ratio Analysis

MJO Inc. has the following stockholders' equity section of the balance sheet:

MJO Inc.
Balance Sheet (Partial)
Stockholdersequity:
Preferred stock, 100,000 shares authorized; 30,000 issued and outstanding				$300,000
Common stock, 1,000,000 shares authorized; 600,000 issued; 550,000 outstanding				1,200,000
Additional paid-in capital:
	Preferred stock	$90,000
	Common stock	4,800,000		4,890,000
	Total capital stock			$6,390,000
Retained earnings				450,000
	Accumulated other comprehensive income			22,000
	Less: Treasury stock, at cost			(800,000)
	Total stockholders equity			$6,062,000

On the balance sheet date, MJO's stock was selling for $25 per share.

Required:

1. Assuming MJO's dividend yield is 1%, what are the dividends per common share? If required, round your answer to the nearest cent.

Dividends per Common Share $

2. Assuming MJO's dividend yield is 1% and its dividend payout is 20%, what is MJO's net income?

Net Income $