The following information pertains to Milo Mindbender Corporation: Net income ............ $123,000 Dividends per common share...... $2.00

Question:

The following information pertains to Milo Mindbender Corporation:

Net income ............ $123,000

Dividends per common share...... $2.00

Common shares .......... 12,000

Purchases of treasury stock ....... $85,000

Common share price ........ $20

Required:
Calculate the dividend yield, dividend payout, and total payout.

Dividend
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...