Calculate dividend yield for common stock


Response to the following problem:

The following information was taken from the financial statements of Fashion Cosmetics, Inc., for December 31 of the current fiscal year:

Common stock, $12 par value (no change during the year)                          $2,400,000

Preferred $9 stock, $100 par, cumulative, nonparticipating

(no change during year)                                                                              600,000

The net income was $444,000 and the declared dividends on the common stock were $156,000 for the current year. The market price of the common stock is $39 per share.

For the common stock, determine the

(a) earnings per share,

(b) price-earnings ratio,

(c) dividends per share, and

(d) dividend yield.

Round to two decimal places.

 

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Financial Accounting: Calculate dividend yield for common stock
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