On December 31, 2014, Renda's common stock sold for $29 per share, and dividends per share were $0.60. Compute Renda's dividend yield during 2014.

(Round your answer to one decimal place.)

A. 3.1%

B. 2.1%

C. 6.0%

D. 1.0%

Renda Company

Consolidated Balance Sheets

December 31, 2014 and 2013

(In millions, except per share data)

2014

2013

Assets

Current assets:

Cash and equivalents $600 $435

Accounts and notes receivable 750 850

Inventories, at cost, not in excess of market 144 114

Prepaid expense and other current assets 590 435

Total current assets 2,084 1,834

Property and equipment:

Property and equipment, at cost 28,770 26,800

Accumulated depreciation and amortization (8,850) (7,100)

Net property and equipment 19,920 19,700

Other assets:

Investments in affiliates 1,160 1,055

Goodwill, net 1,780 1,580

Miscellaneous 1,020 1,080

Total other assets 3,960 3,715

Total assets $25,964 $25,249

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $620 $640

Income taxes 75 12

Other taxes 200 175

Accrued interest 187 186

Accrued restructuring and restaurant closing costs 120 300

Accrued payroll and other liabilities 924 735

Current maturities of long-term debt 384 315

Total current liabilities 2,510 2,363

Long-term debt 9,000 9,700

Other long-term liabilities and minority interests 700 520

Deferred income taxes 1,000 1,020

Total liabilities $13,210 $13,603

Stockholders' equity:

Preferred stock, no par value; authorized140.0 million shares; issuednone --- ---

Common stock, $.01 par value; authorized2.0 billion shares;

issued1,300 million shares 13 13

Additional paid-in capital 1,100 2,633

Unearned ESOP compensation (91) (100)

Retained earnings 21,952 19,700

Accumulated other comprehensive income (loss) (820) (1,650)

Common stock in treasury, at cost; 100 and 250 million shares (9,400) (8,950)

Total stockholders' equity 12,754 11,646

Total liabilities and stockholders' equity $25,964 $25,249

Renda Company

Consolidated Statements of Income (Adapted)

Years Ended December 31, 2014 and 2013

(In millions, except per share data)

2014

2013

Revenues
Sales by Company-operated restaurants	$13,400	$11,500
Revenues from franchised and affiliated restaurants	4,350	3,800
Total revenues	17,750	15,300
Food and paper (Cost of goods sold)	2,680	4,025
Payroll and employee benefits	3,600	3,300
Occupancy and other operating expenses	3,100	2,700
Franchised restaurantsoccupancy expenses	950	835
Selling, general, and administrative expenses	1,835	1,750
Other operating expense, net	555	840
Total operating expenses	12,720	13,450
Operating income	5,030	1,850
Interest expense	360	350
Other nonoperating expense, net	98	65
Income before income taxes	4,572	1,435
Income tax expense	1,600	574
Net income	$2,972	$861
Per common share basic:
Net Income	$2.48	$0.82
Dividends per common share	$0.60	$0.40