Leflore Corporation Has Provided the Following Data Dividends on Common Stock During Year 2 Totaled $6,000

Leflore Corporation has provided the following data: $\begin{array}{lrr}&{\text { Year 2 }} &{\text { Year 1 }} \\\text {Common stock, \$5 par value. }&\$ 500,000 & \$ 500,000 \\\text {Total stockholders' equity. }&\$ 1,016,000 & \$ 1,010,000 \\\text {Net operating income. }&\$ 35,143 & \\\text {Net income before taxes }&\$ 17,143 & \\\text { Net income }&\$ 12,000 &\end{array}$ Dividends on common stock during Year 2 totaled $6,000. The market price of common stock at the end of Year 2 was $1.38 per share. The company's dividend yield ratio for Year 2 is closest to:

A) 4.3%
B) 1.2%
C) 35.0%
D) 50.0%

Correct Answer:

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