Knife Corp ​
-Refer to the Data for Knife Corp

Essay

Knife Corp.
Use the selected data presented below from the financial statements of Knife Corp.for 2018 and 2017 to answer the questions that follow.
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$\begin{array}{lrr}&2018&2017\\\text { Net income } & \$ 110,000 & \$ 123,000 \\\text { Cash dividends paid on preferred stock } & \$ 12,000 & \$ 15,000 \\\text { Cash dividends paid on common stock } & \$ 42,000 & \$ 38,000 \\\text { Weighted average number of common shares outstanding } & 105,000 & \$ 5,000 \\\text { Market price per share of common stock at the end of the year } & \$ 16.00 & \$ 13.00\end{array}$ ​
-Refer to the data for Knife Corp.
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Required
(A)Calculate the dividend yield ratio for 2018 for Knife.Explain.
(B)What factors could have caused the change in the market value of Knife's stock from 2017 to 2018? Explain.