Question
Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $35,000 $55,000 Preferred stock dividends 3,000 3,000
Los Altos, Inc., disclosed the following information in a recent annual report:
| Year 1 | Year 2 | |
|---|---|---|
| Net income | $35,000 | $55,000 |
| Preferred stock dividends | 3,000 | 3,000 |
| Average common stockholders equity | 1,200,000 | 1,500,000 |
| Dividend per common share | 1.20 | 1.20 |
| Earnings per share | 1.90 | 2.05 |
| Market price per common share, year-end | 19.50 | 21.00 |
Calculate the dividend payout for Los Altos, Inc. for both years. Round to one decimal.
| Year 1 | Year 2 | |
|---|---|---|
| Common stock dividend payout | Answer
| Answer
|
Did the dividend payout increase from Year 1 to Year 2? AnswerNo Yes
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Glencoe Accounting Real World Applications And Connections Advanced Course Audit Tests
Authors: McGraw-Hill
5th Edition
0078462002, 978-0078462009
