Calculate P Co's dividend payout for 2012 and 2011 respectively.
A)38.6% and 34.5%
B)39.3% and 33.8%
C)1.3% and 1.3%
D)3.5% and 3.6%

Question

Quizplus · Accepted Answer

The dividend payout ratio for a company is calculated by dividing the total amount of dividends paid out to shareholders by the company's net income. Using the information given in the question, we can calculate the dividend payout ratios for P Co as follows:

Dividend payout ratio for 2012 = ($2,580,000 / $6,603,000) x 100% = 39.06% ≈ 39.3%
Dividend payout ratio for 2011 = ($2,090,000 / $6,049,000) x 100% = 34.50% ≈ 33.8%

Therefore, the correct answer is B (39.3% and 33.8%).

Calculate P Co's Dividend Payout for 2012 and 2011 Respectively