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Return on Common Stockholders Equity, Dividend Yield, and Dividend Payout The following information relates to Waterloo Components, Inc.: 2015 2016 Net income $75,000 $85,000 Preferred

Return on Common Stockholders Equity, Dividend Yield, and Dividend Payout

The following information relates to Waterloo Components, Inc.:

2015 2016
Net income $75,000 $85,000
Preferred stock dividends 5,000 5,000
Average common stockholders' equity 2,000,000 2,100,000
Dividend per common share 1.80 1.90
Earnings per share 2.90 2.95
Market price per common share, year-end 29.50 30.00

a. Calculate the companys return on common stockholders equity for 2015 and 2016. b. Calculate the companys dividend yield for 2015 and 2016. c. Calculate the companys dividend payout for 2015 and 2016.

Round answers to one decimal point.

2015 2016
a. Return on Common Stockholder Equity

b. Dividend Yield

c. Dividend Payout

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