Question
Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $70,000 $121,000 Preferred stock dividends 6,000 6,600
Los Altos, Inc., disclosed the following information in a recent annual report:
| Year 1 | Year 2 | |
|---|---|---|
| Net income | $70,000 | $121,000 |
| Preferred stock dividends | 6,000 | 6,600 |
| Average common stockholders equity | 2,640,000 | 3,000,000 |
| Dividend per common share | 2.64 | 2.40 |
| Earnings per share | 3.80 | 4.51 |
| Market price per common share, year-end | 39.00 | 46.20 |
Calculate the common stock dividend yield for Los Altos, Inc. for both years. Round to one decimal.
| Year 1 | Year 2 | |
|---|---|---|
| Common stock dividend yield | Answer | Answer |
Did the dividend yield improve from Year 1 to Year 2? AnswerNoYes
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College Accounting A Practical Approach
Authors: Jeffrey Slater, Debra Good
14th Canadian Edition
0135222419, 978-0135222416
