Last Year,Bickham Corporation's Dividend on Common Stock Was $8

question 159

Essay

Last year,Bickham Corporation's dividend on common stock was $8.70 per share and the dividend on preferred stock was $3.80 per share.The market price of common stock at the end of the year was $66.10 per share.
Required:
Compute the dividend yield ratio.Show your work!

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Definitions:

Income Effect

The change in an individual's or market's consumption resulting from a change in real income.

Inferior Good

A type of good for which demand decreases as the income of consumers increases.

Convex Preferences

A preference structure where a consumer prefers mixtures or averages of two goods or bundles to extreme amounts of one good or bundle.

Utility Function

A mathematical representation in economics that quantifies the satisfaction or happiness an individual gains from consuming various bundles of goods and services.