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On January 1, 2011, Wombat Corporation Issued 100,000 shares of common stock. In 2011, Wombat reported $500,000 of net income and distributed $200,000 of dividends.

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On January 1, 2011, Wombat Corporation Issued 100,000 shares of common stock. In 2011, Wombat reported $500,000 of net income and distributed $200,000 of dividends. Throughout 2011, the market price of Wombat's stock was $60 per share. In 2012, Wombat reported $500,000 of net income and distributed $300,000 of dividends. Throughout 2012, the market price of Wombat's stock was $100 per share. Which statement is true regarding the relationship of Wombat's financial statement ratios in 2011 and 2012? Both the dividend yield ratio and the dividend payout ratio are lower in 2012, The dividend yield ratio is higher, but the dividend payout ratio is lower in 2012. The dividend yield ratio is lower, but the dividend payout ratio is higher in 2012 Both the dividend yield ratio and the dividend payout ratio are higher in 2012

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