Question

Exercise 10-79 Ratio Analysis MJO Inc. has the following stockholders' equity section of the balance sheet:...

Exercise 10-79
Ratio Analysis

MJO Inc. has the following stockholders' equity section of the balance sheet:

MJO Inc.
Balance Sheet (Partial)
Stockholders’equity:
Preferred stock, 100,000 shares authorized; 30,000 issued and outstanding $300,000
Common stock, 1,000,000 shares authorized; 600,000 issued; 550,000 outstanding 1,200,000
Additional paid-in capital:
Preferred stock $90,000
Common stock 4,800,000 4,890,000
   Total capital stock $6,390,000
Retained earnings 450,000
Accumulated other comprehensive income 22,000
Less: Treasury stock, at cost (800,000)
   Total stockholders’ equity $6,062,000

On the balance sheet date, MJO's stock was selling for $25 per share.

Required:

1. Assuming MJO's dividend yield is 1%, what are the dividends per common share? If required, round your answer to the nearest cent.

Dividends per Common Share $

2. Assuming MJO's dividend yield is 1% and its dividend payout is 20%, what is MJO's net income?

Net Income $

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Answer #1

1. when dividend yield is 1% Cadoulato Dividend per Corsa 001 Share Sol. Dividend wjeld - Dividends per comonshore Common sto

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