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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 $45,000 70,000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity 80,000 55,000 $250,000 Income Statement Sales $85,000 45,000 Cost of goods sold Gross margin Operating expenses $40,000 (15,000) (5,000) Interest expense Net income $20,000 6,000 $20 Number of shares of common stock outstanding Market price of common stock Total dividends paid Cash provided by operations What is the dividend yield for Diane Company? $9,000 $30,000 a. 0.75% O b. 13.396 Oc 1.396 O d. 7.5%
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