Sperle Corporation Has Provided the Following Data Concerning Its Stockholders

question 301

Multiple Choice

Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share.The company's dividend yield ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) 21.1%
• B) 2.6%
• C) 1.6%
• D) 14.7%

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Definitions:

Standard Cost System

An accounting system that uses cost estimates for materials, labor, and overhead to assess operational efficiency and inventory valuation.

Reportable Segment

A part of a company that can be identified for reporting purposes based on its products, services, or geographical location.

General Corporate Assets

Assets owned by a corporation that are used in the overall operations and support of the business, including both tangible and intangible assets.

Research and Development

Activities undertaken by a company to innovate and introduce new products or services, often categorized as an expense.