The Following Data Were Reported for Favre Company Required:
Calculate Each of the Following Ratios

The following data were reported for Favre Company: $$\begin{array} { l l } \text { Net income } & \$ 275,000 \\\text { Total dividends declared and paid on common stock } & \$ 0.60 \text { per share } \\\text { Common stock, par } \$ 10 & \$ 1,750,000 \\\text { Market price } & \$ 20.00 \text { per share } \\\text { Cash flows from operating activities } & \$ 280,000\end{array}$$ Required:
Calculate each of the following ratios. Round your answers to two decimal places.
A. Dividend yield
B. Price/earnings ratio
C. Quality of income

Correct Answer:

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A. Dividend yield = 3.0% = .60...

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