Refer to the information for Santiago Systems on the previous pages. Also, assume that the market price
Question:
The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows:
Santiago Systems
Statement of Retained Earnings
For the Year Ended December 31, 20X2
Balance, beginning of period..............................................$1,205,500
Net income.......................................................................422,070
Total...........................................................................$1,627,570
Preferred dividends............................................................(40,000)
Dividends to common stockholders........................................(150,000)
Balance, end of period......................................................$1,437,570
Required:
1. Compute the dividends per share.
2. Compute the dividend yield.
3. Compute the dividend payout ratio.
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Managerial Accounting The Cornerstone of Business Decision Making
ISBN: 978-1337115773
7th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger