Partridge, Inc provides the following information for 2017
Net income $33,000
Market price per share of common stock $13/share
Dividends paid $0.90/share
Common stock outstanding at Jan. 1, 2017 110,000 shares
Common stock outstanding at Dec. 31, 2017 155,000 shares
The company has no preferred stock outstanding. Calculate the dividend yield for common stock. (Round your answer to two decimal places.)
A) 6.92%
B) 1.92%
C) 5.00%
D) 7.44%
A .A) Dividend yield = Annual dividend per share / Market price per share of common stock = $0.90 per share / $13 per share = 6.92%
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