The Following Data Represent Selected Information from the Comparative Income

question 45

Multiple Choice

The following data represent selected information from the comparative income statement and balance sheet for Dunkin Company for the years ended December 31, 2011 and 2010: * 10,000 shares of common stock have been issued and outstanding since the company was established. They had a market value of $90 per share on December 31, 2010, and they were selling for $91.50 on December 31, 2011. Dividends of $6,000 were paid on the common stock each year. The dividend yield for Dunkin Company for 2011, was:

• A)6)56%.
• B)7)85%.
• C)7)50%.
• D)5)25%

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Definitions:

Holding Cost Rate

The annual cost per unit of holding an item in inventory, including storage, insurance, spoilage, theft, and other related costs.

Thunder Bay

A city in Ontario, Canada, known for its natural beauty and as a gateway to outdoor activities in the surrounding region.

Holding Cost Rate

The percentage of the value of inventory that is held as a cost for storing, insuring, and managing goods over a certain period.

Chilliwack

A city in the province of British Columbia, Canada, known for its natural beauty and outdoor activities.