Question Help

On December31, 2014

2014, Santiago

Santiago's common stock sold for $ 34

$34 pershare, and dividends per share were $0.60

0.60. Compute Santiago

Santiago's dividend yield during 2014

2014.

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(Round your answer to one decimalplace.)

A.

1.8

1.8%

B.

3.6

3.6%

C.

1.4

1.4%

D.

6.0

6.0%

Click to select your answer.

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Data Table

Santiago Company

Consolidated Balance Sheets

December 31, 2014 and 2013

(In millions, except per share data)

2014

2013

Assets

Current assets:

Cash and equivalents

$

570

$

440

Accounts and notes receivable

790

826

Inventories, at cost, not in excess of market

110

126

Prepaid expense and other current assets

530

440

Total current assets

2,000

1,832

Property and equipment:

Property and equipment, at cost

28,730

26,000

Accumulated depreciation and amortization

(8,880)

(7,200)

Net property and equipment

19,850

18,800

Other assets:

Investments in affiliates

1,160

1,020

Goodwill, net

1,700

1,570

Miscellaneous

930

1,090

Total other assets

3,790

3,680

Total assets

$

25,640

$

24,312

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

610

$

640

Income taxes

66

16

Other taxes

205

200

Accrued interest

191

182

Accrued restructuring and restaurant closing costs

100

325

Accrued payroll and other liabilities

916

715

Current maturities of long-term debt

390

265

Total current liabilities

2,478

2,343

Long-term debt

8,900

9,500

Other long-term liabilities and minority interests

750

560

Deferred income taxes

990

1,005

Total liabilities

$

13,118

$

13,408

Stockholders' equity:

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

---

---

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

issued1,900 million shares

19

19

Additional paid-in capital

1,588

2,323

Unearned ESOP compensation

(89)

(98)

Retained earnings

21,224

19,300

Accumulated other comprehensive income (loss)

(820)

(1,650)

Common stock in treasury, at cost; 1,100 and 1,150 million shares

(9,400)

(8,990)

Total stockholders' equity

12,522

10,904

Total liabilities and stockholders' equity

$

25,640

$

24,312

PrintDone

Santiago 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

$

12,800

$

11,000

Revenues from franchised and affiliated restaurants

4,550

4,100

Total revenues

17,350

15,100

Food and paper (Cost of goods sold)

3,200

3,080

Payroll and employee benefits

4,000

3,100

Occupancy and other operating expenses

2,700

3,100

Franchised restaurantsoccupancy expenses

949

840

Selling, general, and administrative expenses

1,810

1,745

Other operating expense, net

520

815

Total operating expenses

13,179

12,680

Operating income

4,171

2,420

Interest expense

375

380

Other nonoperating expense, net

97

65

Income before income taxes

3,699

1,975

Income tax expense

1,295

691

Net income

$

2,404

$

1,284

Per common share basic:

Net Income

$

3.01

$

1.71

Dividends per common share

$

0.60

$

0.65