Partridge Inc. provides the following information for the year 2014: $$\begin{array} { | l | r | }
\hline \text { Net income } & 180,000 \
\hline \text { Market price per share of common stock } & \$ 20,00 / \text { share } \
\hline \text { Dividends paid } & \$ 1.00 / \text { share } \
\hline \text { Common stock outstanding at Jan. } 1,2014 & 110,000 \text { shares } \
\hline \text { Common stock outstanding at Dec. } 31,2014 & 150,000 \text { share } \
\hline
\end{array}$$ The company has no preferred stock outstanding. Calculate the dividend payout ratio.
A) 67.02%
B) 33.33%
C) 30.00%
D) 72.46%

Question

Partridge Inc. provides the following information for the year 2014: $$\begin{array} { | l | r | } 
\hline \text { Net income } & 180,000 \
\hline \text { Market price per share of common stock } & \$ 20,00 / \text { share } \
\hline \text { Dividends paid } & \$ 1.00 / \text { share } \
\hline \text { Common stock outstanding at Jan. } 1,2014 & 110,000 \text { shares } \
\hline \text { Common stock outstanding at Dec. } 31,2014 & 150,000 \text { share } \
\hline
\end{array}$$ The company has no preferred stock outstanding. Calculate the dividend payout ratio.
A) 67.02%
B) 33.33%
C) 30.00%
D) 72.46%

Quizplus · Accepted Answer

The Answer of Partridge Inc. provides the following information for the year 2014: $$\begin{array} { | l | r | } 
\hline \text { Net income } & 180,000 \
\hline \text { Market price per share of common stock } & \$ 20,00 / \text { share } \
\hline \text { Dividends paid } & \$ 1.00 / \text { share } \
\hline \text { Common stock outstanding at Jan. } 1,2014 & 110,000 \text { shares } \
\hline \text { Common stock outstanding at Dec. } 31,2014 & 150,000 \text { share } \
\hline
\end{array}$$ The company has no preferred stock outstanding. Calculate the dividend payout ratio.
A) 67.02%
B) 33.33%
C) 30.00%
D) 72.46%

Partridge Inc The Company Has No Preferred Stock Outstanding