Dooley Corporation had net income of $200,000 and paid dividends to ordinary shareholders of $40,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. Dooley Corporation's ordinary shares are selling for $35 per share on the New York Stock Exchange. Dooley Corporation's payout ratio for 2014 is
A) $4 per share.
B) 20%.
C) 25%.
D) 10%.

Question

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The Answer of Dooley Corporation had net income of $200,000 and paid dividends to ordinary shareholders of $40,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. Dooley Corporation's ordinary shares are selling for $35 per share on the New York Stock Exchange. Dooley Corporation's payout ratio for 2014 is
A) $4 per share.
B) 20%.
C) 25%.
D) 10%.

Dooley Corporation Had Net Income of $200,000 and Paid Dividends