Selected Data for the Boat Rental Company Follow -What Is the Dividend Yield Ratio on Common Shares for |

question 110

Multiple Choice

Selected data for the Boat Rental Company follow:
$\begin{array} {|l | r | r | } \hline & \text { Current Year } & \text { Prior Year } \\\hline \begin{array} { l } \text { Preferred Shares, 8\% Par } \\\text { Value } \$ 50\end{array} & \$ 250000 & \$ 250000 \\\hline \begin{array} { l } \text { Common Shares, Per Value } \\\$ 10\end{array} & \$ 500000 & \$ 500000 \\\hline \begin{array} { l } \text { Retained Earnings at End of } \\\text { Year }\end{array} & \$ 257000 & \$ 240000 \\\hline \begin{array} { l } \text { Net Income } \\\end{array}&\$ 102000 & \$ 90000\\\hline \begin{array} { l } \text { Dividends Paid on Preferred } \\\text { Shares }\end{array} &\$20000&\$20000 \\\hline \begin{array} { l } \text { Dividends Paid on Common } \\\text { Shares }\end{array} & \$ 55000 & \$50000 \\\hline \begin{array} { l } \text { Quoted Market Price per } \\\text { Common Share at Year End }\end{array} & \$ 25 & \$20 \\\hline\end{array}$

-What is the dividend yield ratio on common shares for the current year,rounded to the nearest tenth of a percent?

• A) 4.4%
• B) 6.6%.
• C) 6.8%.
• D) 7.4%.

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Definitions:

Voting Period

The designated timeframe during which eligible individuals can cast their votes in an election or on a specific issue.

Public Good

A provision of goods or services to everyone in a society, not aiming for profit, and supplied by the government, private individuals, or organizations.

Marginal Cost

The price of creating an additional unit of a good or service.

Mohair Loan Subsidies

Financial support programs specifically targeting the mohair industry, often to assist farmers or producers with loans at favorable rates.