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View Full Version : Accounting help!!


maizy886
Apr 14, 2014, 11:20 AM
I am stuck on this question. It is a self-study for my final in two weeks and I would like to understand this before hand. (HS Senior/AP accounting)

What is the dividend yield on common stock? The only answer I can come up with is .36

What type of retail clothing store with the highest ratio of net sales to assets is most likely?
A. Men's clothing
B. Home Appliances

My guess is B because they are more expensive than clothing.

The information I have is: (annual numbers)

Preferred 7% stock, $100 par $100,000
Common Stock, $20 par $200,000
Paid-in-Capital in excess of par- common stock $50,000
Retained Earnings, $300,000

Cash Dividends paid on common stock $40,000

Common stock was selling for $56 per share at the end of the year

rehmanvohra
Apr 15, 2014, 01:13 AM
Dividend yield:
Dividend per share/market value per share
40000/10000 = $4 per share/$56
Yield = 7.14%