Hamming Corporation\'s most recent balance sheet and income statement appear bel
ID: 2371618 • Letter: H
Question
Hamming Corporation's most recent balance sheet and income statement appear below:
70
70
620
630
$1,350
$1,320
110
110
150
170
540
530
130
110
810
790
$1,350
$1,320
790
618
46
106
32
$ 74
Dividends on common stock during Year 2 totaled $50 thousand. Dividends on preferred stock totaled $4 thousand. The market price of common stock at the end of Year 2 was $6.98 per share.
The dividend yield ratio for Year 2 is: (Round your intermediate calculations and final answer to 2 decimal places.)
Hamming Corporation's most recent balance sheet and income statement appear below:
Explanation / Answer
Hi,
Please find the answer as follows:
Dividend Yield Ratio = Dividend Per Share/Price Per Share
Dividend Per Share = Total Dividend Distributed on Common Stock/Total Number of Common Shares Outstanding
Total Dividend Distributed on Common Stock = 50000
Total Number of Common Shares Outstanding = Value of Common Stock/Par Value = 400000/2 = 200000
Dividend Per Share = 50000/200000 = .25
Dividend Yield Ratio = .25/6.98 = 3.58%
Answer is 3.58%
Thanks.
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