Montreal Electronics has the following data available: $\begin{array}{lll}
&2013&2012\
\text { Net Income } & \$ 90 & \$ 80 \
\text { Earnings Per Share } & \$ .45 & \$ .40 \
\text { Annual Common Dividends Per Share } & \$ .40 & \$ .20 \
\text { Closing Market Price Common Stock, } 12 / 31 & \$ 9.00 & \$ 6.00
\end{array}$ What is the dividend-yield for Montreal Electronics in 2013? Has the dividend-yield increased or decreased since 2012?
A)10.0%,decreased
B)3.3%,decreased
C)4.4%,increased
D)4.4%,decreased
E)3.3%,increased

Question

Quizplus · Accepted Answer

Dividend Yield = (Annual Common Dividends Per Share / Closing Market Price Common Stock) x 100%
For 2013, Dividend Yield = (0.40 / 9.00) x 100% = 4.44%
For 2012, Dividend Yield = (0.20 / 6.00) x 100% = 3.33%
Therefore, the dividend-yield has increased since 2012. The correct answer is C).

Montreal Electronics Has the Following Data Available What Is the Dividend-Yield for Montreal Electronics in 2013? Has