Commons, Inc The Company Has No Preferred Stock Outstanding

question 9

Multiple Choice

Commons, Inc. provides the following information for 2018: $$\begin{array} { | l | r | } \hline \text { Net income } & \$ 36,000 \\\hline \text { Market price per share of common stock } & \$ 16 / \text { share } \\\hline \text { Dividends paid } & \$ 0.70 / \text { share } \\\hline \text { Common stock outstanding at Jan. } 1,2018 & 130,000 \text { shares } \\\hline \text { Common stock outstanding at Dec. } 31,2018 & 165,000 \text { shares } \\\hline\end{array}$$ The company has no preferred stock outstanding. Calculate the dividend yield for common stock. (Round your answer to two decimal places.)

• A) 4.38%
• B) 1.50%
• C) 2.88%
• D) 4.58%

Comprehend the requirements and effects of firm offers and contracts within the UCC.

Analyze the role of documents of title in transferring title and risk of loss.

Identify the characteristics of goods and the implications for contracts involving future goods or uniquely manufactured items.

Understand the legal differences between sales and bailments.

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Definitions:

Segregation Of Duties

An internal control method used to prevent fraud and errors, which involves dividing tasks and responsibilities among different people to ensure no single individual controls all aspects of a transaction.

Internal Controls

Mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Computerized Systems

Electronic systems that use computers to manage, store, and process data, often used in modern accounting practices.

Reliable Financial Reporting

Financial reporting that accurately reflects an entity's financial performance and position, ensuring users can depend on the veracity and precision of the disclosed information.