Reference no: EM132771246

The following information is available for Nutritious Nuts, Inc.:

                                    Year 2             Year 1

Dividends per share           $ 0.15            $0.12

Earnings per share             0.73               0.80

Market price per share      10.00       9.27

Problem 1: How much is Nutritious Nuts, Inc.'s dividend yield for Year 2?

Select one:

a. 1.50%

b. 83.04%

c. 6.72%

d. 17.93%

Problem 2: Which of the following is a common signal that 'share repurchases' send to the capital market?

Select one:

a. That management feels that it will not achieve its estimated earnings targets

b. That management feels that the current share price undervalues a firm's intrinsic value

c. That dividends will not be paid during the foreseeable future

d. That management feels that a firm's current profits are overstated