Question

​Partridge, Inc. provides the following information for​2017:

Net income $33,000
Market price per share of common stock ​ $13/share
Dividends paid ​$0.90/share
Common stock outstanding at Jan.​ 1, 2017 ​110,000 shares
Common stock outstanding at Dec.​ 31, 2017 ​155,000 shares

The company has no preferred stock outstanding. Calculate the dividend yield for common stock.​ (Round your answer to two decimal​ places.)
A.​5.00%
B.1.92%
C.​6.92%
D.7.44%

Answer 1

C.​6.92%

Step-by-step explanation:

The computation of the dividend yield is shown below:

= (Dividend paid per share) ÷ (Market price per share of common stock) × 100

= $0.90 ÷ $13 × 100

= 6.92%

It shows a relationship between the dividend per share and the market price per share of common stock so that the accurate dividend yield could find out

All other information which is given is not relevant. Hence, ignored it