Leflore Corporation Has Provided the Following Data: Dividends on Common

question 230

Multiple Choice

Leflore Corporation has provided the following data: Dividends on common stock during Year 2 totaled $6,000.The market price of common stock at the end of Year 2 was $1.38 per share.The company's dividend yield ratio for Year 2 is closest to:

• A)4.3%
• B)1.2%
• C)35.0%
• D)50.0%

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Definitions:

Direct Method

A method for preparing the cash flow statement that lists major classes of gross cash receipts and payments.

Income Tax Expense

The cost associated with the taxes on a company's taxable income, reflecting the amount of income tax a company expects to pay to the government.

Income Taxes Payable

The sum of income tax that a corporation is liable to pay to the government but has not paid so far.

Cash Payments

Transactions involving the transfer of cash from one entity to another as a form of compensation or settlement.