Partridge Ltd Provides the Following Information for the Year 2017

question 112

Multiple Choice

Partridge Ltd provides the following information for the year 2017:
$$\begin{array} { | l | l | } \hline \text { Net profit } & \$ 34,000 \\\hline \text { Market price per share of ordinary shares } & \$ 17 / \text { share } \\\hline \text { Dividends paid } & \$ 0.75 / \text { share } \\\hline \text { Ordinary shares outstanding at 1 Jan 2016 } & 130,000 \text { shares } \\\hline \text { Ordinary shares outstanding at 31 Dec 2017 } & 150,000 \text { shares } \\\hline\end{array}$$
The company has no preference shares outstanding.Calculate the dividend yield for ordinary shares.

• A) 4.41%
• B) 3%
• C) 1.41%
• D) 4.62%

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Definitions:

Output Level

is the quantity of goods or services produced within a given period by a firm or economy.

Plant Size

Refers to the scale or capacity of a manufacturing facility or industrial plant, affecting its potential output levels and efficiency.

Output Units

The measured quantity of goods or services produced by a firm or industry.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment to changes.