Commons,Inc The Company Has No Preferred Stock Outstanding

question 20

Multiple Choice

Commons,Inc.provides the following information for 2018: $$\begin{array} { | l | r | } \hline \text { Net income } & \$ 32,000 \\\hline \text { Market price per share of common stock } & \$ 19 / \text { share } \\\hline \text { Dividends paid } & \$ 0.75 / \text { share } \\\hline \text { Common stock outstanding at Jan. } 1,2018 & 110,000 \text { shares } \\\hline \text { Common stock outstanding at Dec. } 31,2018 & 165,000 \text { shares } \\\hline\end{array}$$ The company has no preferred stock outstanding.Calculate the dividend yield for common stock.(Round your answer to two decimal places.)

• A) 3.95%
• B) 1.21%
• C) 2.74%
• D) 4.11%