-What Is the Dividend Yield Ratio on Common Shares for {|

question 144

Multiple Choice

$\begin{array}{l}\text { Selected data for the MK Company follow: }\\\\\begin{array} {| l | r | r | } \hline & \text { Current Year } & \text { Prior Year } \\\hline \begin{array} { l } \text { Preferred Shares, 8\% Par } \\\text { Value } \$ 50\end{array} & \$ 250000 & \$ 250000 \\\hline \begin{array} { l } \text { Common Shares, Per Value } \\\$ 10\end{array} & \$ 500000 & \$ 500000 \\\hline \begin{array} { l } \text { Retained Earnings at End of } \\\text { Year }\end{array} & \$ 257000 & \$ 240000 \\\hline \begin{array} { l } \text { Net Income } \\\end{array} & \$ 102000 & \$ 90000\\\hline \begin{array} { l } \text { Dividends Paid on Preferred } \\\text { Shares }\end{array} & \$ 20000 & \$ 20000\\\hline \begin{array} { l } \text { Dividends Paid on Common } \\\text { Shares }\end{array} & \$ 65000 & \$ 60000 \\\hline \begin{array} { l } \text { Qouted Market Price per } \\\text { Common Share at Year End }\end{array} &\$25&\$20 \\\hline\end{array}\end{array}$
-What is the dividend yield ratio on common shares for the current year,rounded to the nearest tenth of a percent?

• A) 5.2%
• B) 6.6%.
• C) 6.8%.
• D) 7.4%.

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Definitions:

Market Demand

The total quantity of a product or service that consumers are willing to buy at a specific price over a certain period.

Financial Health

The condition of an organization's or individual's finances, reflecting their ability to meet short-term obligations and long-term financial goals.

Interview Process

The series of stages or steps taken by an organization to evaluate candidates and select the most suitable one for a job position.

Salary Range

The spectrum of potential earnings for a specific position, defined by a minimum and maximum possible salary.