Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share.The company's dividend payout ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) 1.6%
B) 21.1%
C) 2.6%
D) 14.7%

Question

Sperle Corporation has provided the following data concerning its stockholders' equity accounts:  Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share.The company's dividend payout ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) 1.6% 
B) 21.1% 
C) 2.6% 
D) 14.7%

Quizplus · Accepted Answer

Dividend payout ratio = Dividends on common stock / Net income
Dividend payout ratio = $6,400 / $30,400 = 0.21 or 21.1% (rounded to 2 decimal places)

Sperle Corporation Has Provided the Following Data Concerning Its Stockholders