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%

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Definitions:

Group Attitude Scale

A measure used to assess the collective attitudes or opinions of a group towards a particular object, idea, or person.

Tuckman

A theoretical model describing the stages of group development: forming, storming, norming, performing, and adjourning.

Stages Of Development

Describes the phase-based progression that groups or individuals undergo, from formation to termination, each stage characterized by specific challenges and behaviors.

Forming

The initial stage in group development where members meet and start to understand the group’s purpose.