Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.

Assets
Cash and short-term investments $30,000
Accounts receivable (net) 20,000
Inventory 15,000
Property, plant and equipment 185,000
Total Assets $250,000
Liabilities and Stockholders' Equity
Current liabilities $45,000
Long-term liabilities 70,000
Common stock 80,000
Retained earnings 55,000
Total liabilities and stockholders' equity $250,000
Income Statement
Sales $85,000
Cost of goods sold 45,000
Gross margin $40,000
Operating expenses (15,000)
Interest expense (5,000)
Net income $20,000
Number of shares of common stock outstanding 6,000
Market price of common stock $20
Total dividends paid $9,000
Cash provided by operations $30,000

What is the dividend yield for Diane Company?

a.1.3%

b.13.3%

c.7.5%

d.0.75%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

11th Edition

1264229739, 9781264229734

More Books

Students also viewed these Accounting questions