Presented Below Are Selected Data from the Financial Statements of Carnival

question 169

Multiple Choice

Presented below are selected data from the financial statements of Carnival Corp.for 2017 and 2016. ? $\begin{array}{lrr}&2017&2016\\\text { Net income } & \$ 110,000 & \$ 123,000 \\\text { Cash dividends paid on common stock } & \$ 42,000 & \$ 38,000 \\\text { Market price per share of common stock at the end of the year } & \$ 16.00 & \$ 13.00 \\\text { Shares of common stock outstanding } & 140,000 & 140,000\end{array}$ The dividend yield ratio for 2017 is

• A) 1.9%
• B) 2.1%
• C) 36.3%
• D) 38.1%

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Definitions:

Black-Scholes Option-Pricing

A mathematical model used to determine the theoretical price of European-style options, factoring in time, its volatility, and other variables.

Expected Return

The weighted average of all possible returns for an investment, considering the probabilities of each outcome.

Strike Prices

The specified price at which an option contract can be exercised, determining the buying or selling price of the underlying asset.

Stock Splits

A corporate action that increases the number of a company's shares by dividing each share, which typically reduces the share price.