Partridge Company Provides the Following Information for the Year 2014

question 112

Multiple Choice

Partridge Company provides the following information for the year 2014:
$$\begin{array} { l l } \text { Net income: } & \$ 31,200 \\\text { Market price of common stock: } & \$ 12.00 / \text { share } \\\text { Dividends paid: } & \$ 0.80 / \text { share } \\\text { Common stock outstanding at January } 1,2014 : & 110,000 \text { shares } \\\text { Common stock outstanding at December } 31,2014 : & 150,000 \text { shares } \\\text { (No preferred stock issued) } &\end{array}$$
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How much was the dividend yield for one share of common stock?

• A) $0.067
• B) $0.167
• C) $0.071
• D) $0.385

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Definitions:

Electron Charge

A fundamental property of the electron indicating the amount of negative electrical charge it carries.

Atom Nucleus

The central core of an atom, containing protons and neutrons, around which electrons orbit.

AC Sinewave

Represents alternating current electricity in a waveform that alternates in a sinusoidal manner, typical of household electrical supply.

Ion

An atom with either an excess or a deficiency of electrons in the valence; a negatively or positively charged particle.