Sperle Corporation Has Provided the Following Data Concerning Its Stockholders

question 103

Multiple Choice

Sperle Corporation has provided the following data concerning its stockholders' equity accounts:
Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share.
-The company's dividend yield ratio for Year 2 is closest to:

• A) 21.1%
• B) 2.6%
• C) 1.6%
• D) 14.7%

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Definitions:

Flexible Budget

A financial plan that shifts in response to alterations in activity or volume.

Overhead Costs

Expenses not directly attributable to the production of goods or services, such as rent, utilities, and administration.

Flexible Budgets

A budget that adjusts or flexes with changes in volume or activity, allowing for a more accurate comparison of actual spending with budgeted amounts for different levels of activity.

Actual Overhead

The real costs incurred for indirect materials, labor, and expenses in operating a business.