Return on Common Stockholders Equity, Dividend Yield, and Dividend Payout The following information relates to...
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Accounting
Return on Common Stockholders Equity, Dividend Yield, and Dividend Payout
The following information relates to Litchfield, Inc.:
Previous Year
Current Year
Net income
$90,000
$130,000
Preferred stock dividends
15,000
15,000
Average common stockholders' equity
4,000,000
4,200,000
Dividend per common share
2.80
3.10
Earnings per share
5.80
5.90
Market price per common share, year-end
58.00
59.50
a. Calculate the companys return on common stockholders equity for each year. b. Calculate the companys dividend yield for each year. c. Calculate the companys dividend payout for each year.
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