Selected data for LETTUCE Company follow: Year 2 Year 1 Preference share, par value P50, 10%.. Ordinary share, par value P20.. Share premium – ordinary share.. Retained earnings . P100,000 P100,000 400,000 400,000 100,000 100,000 140,000 120,000 Net income . 80,000 60,000 Dividends on preference share Dividends on ordinary share . Market price per share, Dec 31... 10,000 10,000 50,000 40,000 28.00 21.00
Selected data for LETTUCE Company follow: Year 2 Year 1 Preference share, par value P50, 10%.. Ordinary share, par value P20.. Share premium – ordinary share.. Retained earnings . P100,000 P100,000 400,000 400,000 100,000 100,000 140,000 120,000 Net income . 80,000 60,000 Dividends on preference share Dividends on ordinary share . Market price per share, Dec 31... 10,000 10,000 50,000 40,000 28.00 21.00
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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May I ask for a solution and explanation to the problem for a better understanding. Thank you!
11. Using Lettuce Company data, what is the dividend yield ratio for years 1 and 2 respectively?
a. 0.10; 0.090
b. 0.80; 0.09
c. 0.95; 0.05
d. 0.85; 0.089
![Selected data for LETTUCE Company follow:
Year 2
Year 1
Preference share, par value P50, 10%..
Ordinary share, par value P20..
Share premium - ordinary share..
Retained earning.
P100,000 P100,000
. 400,000
400,000
100,000
100,000
140,000
120,000
60,000
10,000
Net income .
80,000
Dividends on preference share
Dividends on ordinary share
Market price per share, Dec 31..
10,000
50,000
40,000
28.00
21.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09e5b6dc-c4ce-4c74-8fc7-e0bee0185d5c%2Faad94842-be2e-458c-9513-c207e0f389d3%2F6zrs6fs_processed.png&w=3840&q=75)
Transcribed Image Text:Selected data for LETTUCE Company follow:
Year 2
Year 1
Preference share, par value P50, 10%..
Ordinary share, par value P20..
Share premium - ordinary share..
Retained earning.
P100,000 P100,000
. 400,000
400,000
100,000
100,000
140,000
120,000
60,000
10,000
Net income .
80,000
Dividends on preference share
Dividends on ordinary share
Market price per share, Dec 31..
10,000
50,000
40,000
28.00
21.00
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