Question: Return on Common Stockholders Equity, Dividend Yield, and Dividend Payout The following information relates to Waterloo Components, Inc.: Net income $55,000 $75,000 Preferred stock dividends

Return on Common Stockholders Equity, Dividend Yield, and Dividend Payout The following information relates to Waterloo Components, Inc.:

Net income $55,000 $75,000
Preferred stock dividends 5,000 5,000
Average common stockholders equity 2,000,000 2,100,000
Dividend per common share 1.50 1.60
Earnings per share 2.90 2.95
Market price per common share, year-end 29.50 30.00

a. Calculate the companys return on common stockholders equity for 2012 and 2013. b. Calculate the companys dividend yield for 2012 and 2013. c. Calculate the companys dividend payout for 2012 and 2013.

Round answers to one decimal point.

a. Return on Common Stockholder Equity Answer% Answer%
b. Dividend Yield Answer% Answer%
c. Dividend Payout Answer% Answer%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!