The Following Information Pertains to Jasmin Corporation Jasmin Corporation Had 6,000 Shares of Common Stock Issued and Balance

question 67

Multiple Choice

The following information pertains to Jasmin Corporation. Assume that all balance sheet amounts represent both average and ending figures. $\begin{array}{|l|l|}\hline \text { Jasmin Corporation } \\\hline \text { Partial Balance Sheet } \\\hline \text { December 31, 20xx } \\\hline \text { Liabilities and Stockholders' Equity } \\\hline \text { Current liabilities } & \$ 60,000 \\\hline \text { Long-term liabilities } & 90,000 \\\hline \text { Stockholders' equity } & 150,000 \\\hline \text { Total liabilities and stockholders' equity } & \$ 300,000 \\\hline\end{array}$

$\begin{array}{|l|r|}\hline \text { Jasmin Corporation } \\\hline \text { Income Statement } \\\hline \text { For the Year Ended December } 31,20 \mathrm{xx} \\\hline \text { Net sales } & \$ 80,000 \\\hline \text { Cost of goods sold } & 45,000 \\\hline \text { Gross margin } & \$ 35,000 \\\hline \text { Operating expenses } & 15,000 \\\hline \text { Income before income taxes } & \$ 20,000 \\\hline \text { Income taxes expense } & 5.000 \\\hline \text { Net income } & \$ 15,000 \\\hline\end{array}$ Jasmin Corporation had 6,000 shares of common stock issued and outstanding. The market price of Jasmin common stock on December 31, 20xx, was $20. Jasmin paid dividends of $1.25 per share during 20xx.
-
What is the dividends yield of this corporation? Round your answer to two decimal places.

• A) 6.25 percent
• B) 5.00 percent
• C) 7.50 percent
• D) 3.75 percent

---

Definitions:

Average Cost

A method of inventory valuation which calculates the cost of goods sold based on the average cost of all similar items in inventory.

Periodic Inventory System

An accounting method where the inventory is physically counted at specific intervals to determine the cost of goods sold and the ending inventory balance.

Cost Of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Retail Method

An inventory valuation method used in the retail industry to estimate the ending inventory value, based on the relationship between the cost of goods sold and the retail price.