Kovack Corporation's Net Operating Income in Year 2 Was $66,571

question 327

Multiple Choice

Kovack Corporation's net operating income in Year 2 was $66,571, net income before taxes was $46,571, and the net income was $32,600. Total common stock was $120,000 at the end of both Year 2 and Year 1. The par value of common stock is $2 per share. The company's total stockholders' equity at the end of Year 2 amounted to $962,000 and at the end of Year 1 to $930,000. The company declared and paid $600 dividends on common stock. The market price per share was $4.37. The company's dividend yield ratio for Year 2 is closest to:

• A) 0.2%
• B) 1.3%
• C) 1.9%
• D) 0.5%

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