Shares of common stock outstanding-dividend payout ratio

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A company has 3 million shares of common stock outstanding, it earns 12 percent after taxes on annual sales of $35 million, and has a dividend payout ratio of 40 percent; the stock trades at $14 per share. Given this information, it can correctly be said that the stock has an EPS of a. $11.67 and a dividend yield of 8.5 percent. b. $1.40 and a dividend yield of 25 percent. c. $11.67 and a dividend yield of 1.2 percent. d. $1.40 and a dividend yield of 4 percent.

Reference no: EM131303942

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