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Polk Corporation Reported the Following Information Related to Its Common

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Polk Corporation reported the following information related to its common stock (par $10)outstanding and net income:
 Total stockholders’ equity (no preferred stock) $125,000 Current market price per share of common stock 40 Dividends declared and paid during 201110,000 Balance in the common stock account 40,000 Net income 35,000\begin{array} { l r } \text { Total stockholders' equity (no preferred stock) } & \$ 125,000 \\\text { Current market price per share of common stock } & 40 \\\text { Dividends declared and paid during } 2011 & 10,000 \\\text { Balance in the common stock account } & 40,000 \\\text { Net income } & 35,000\end{array} Calculate each of the following ratios:
A.Price/earnings ratio
B.Dividend yield

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