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 common stock dividend yield for Los Altos, Inc. for both years. Round to one decimal.
| Year 1 | Year 2 | |
|---|---|---|
| Common stock dividend yield |
|
|
Did the dividend yield improve from Year 1 to Year 2? AnswerNoYes
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Accounting Information For Decisions
Authors: Robert Ingram, Thomas L. Albright, Bruce A. Baldwin, John Hill
1st Edition
0538815388, 978-0538815383
