Question: Return on Common Stockholders' Equity, Dividend Yield, and Dividend Payout The following information relates to Litchfield, Inc.: Year 1 Year 2 Net income $110,000

Return on Common Stockholders' Equity, Dividend Yield, and Dividend Payout The following information relates to Litchfield, Inc.: Year 1 Year 2 Net income $110,000 $150,000 Preferred stock dividends 15,000 15,000 Average common stockholders' equity 4,000,000 4,200,000 Dividend per common share 3.00 3.20 Earnings per share 5.80 5.90 Market price per common share, year-end 58.00 59.50 Calculate the following ratios for both years: (Round to two decimal places.) a. Return on common stockholders' equity b. Dividend yield c. Dividend payout Check Year 1 Year 2 % % % % % %
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