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​Commons, Inc. provides the following information for​ 2018:
Net income ​$36,000
Market price per share of common stock ​$16/share
Dividends paid ​$0.70/share
Common stock outstanding at Jan.​ 1, 2018 ​130,000 shares
Common stock outstanding at Dec.​ 31, 2018 ​165,000 shares
The company has no preferred stock outstanding. Calculate the dividend yield for common stock?

Respuesta :

Answer:

4.375%

Explanation:

The formula to compute the dividend yield for common stock is shown below:

= Dividend per share  ÷ Market price per share

= $0.70 per share ÷ $16 per share

= 4.375%

It shows a relationship between the dividend per share and the market price per share so that the accurate amount of dividend yield can come.

All other information which is given is not relevant. Hence, ignored it

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