Question : 151. Based the following information, calculate the dividend yield common stock : 1234197

151. Based on the following information, calculate the dividend yield on common stock

Market price per share

$40.00

Earnings per share

4.00

Dividends per share

1.00

Investor’s cost per share

30.00

 A. 0.075B. 0.025C. 0.133D. 0.033

152. The following information is available for Derby Co.:

2006

Dividends per share of common stock

$  0.80

Market price per share of common stock

20.00

 A. The dividend yield is 4%, which is of interest to investors seeking an increase in market price of their stocks.B. The dividend yield is 4%, which is of special interest to investors seeking current returns on their investments.C. The dividend yield is 25%, which is of interest to bondholders.D. The dividend yield is 4 times the market price, which is important in solvency analysis.

153. The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a  A. liquidating dividendB. stock splitC. stock optionD. preferred dividend

154. A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be A. 160,000 sharesB. 40,000 sharesC. 120,000 sharesD. 10,000 shares

155. When a corporation completes a 3-for-1 stock split  A. the ownership interest of current stockholders is decreasedB. the market price per share of the stock is decreasedC. the par value per share is decreasedD. b and c

156. A corporation has 50,000 shares of $28 par value stock outstanding that has a current market value of $160. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately A. $7B. $112C. $40D. $640

157. The primary purpose of a stock split is to  A. increase paid-in capitalB. reduce the market price of the stock per shareC. increase the market price of the stock per shareD. increase retained earnings

158. Which of the following statements is not true about a 2-for-1 split? A. Par value per share is reduced to half of what it was before the split.B. Total contributed capital increases.C. The market price will probably decrease.D. A stockholder with ten shares before the split owns twenty shares after the split.

159. A corporation has 50,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the market value of the stock will fall to approximately: A. $5B. no changedC. $60D. $24

160. A corporation has 50,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the par value of the stock will be: A. $5B. $60C. unchangedD. $24

161. A corporation has 50,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be: A. 50,000B. 10,000C. 250,000D. 25,000