2A2W THE FOLLOWING INFORMATION CONCERNING ARNOLD COMPANY’S COMMON STO...

88.

CSO: 2A2e

LOS: 2A2w

The following information concerning Arnold Company’s common stock was included in

the company’s financial reports for the last two years.

Year 2

Year 1

Market price per share on December 31

$60

$50

Par value per share

10

10

Earnings per share

3

3

Dividends per share

1

1

Book value per share on December 31

36

34

Arnold’s dividend yield in Year 2

a.

has increased compared to Year 1.

b.

is indicative of the company’s failure to provide a positive return to the investors.

c.

is the same as Year 1.

d.

has declined compared to Year 1.