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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

Liabilities and Stockholders' Equity

Current liabilities $ 45,000
Long-term liabilities 70,000
Stockholders' equityCommon 135,000
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.13.3%

b.7.5%

c.1.3%

d.0.75%

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