A firm paid 60% of net income out in dividends. Its dividend payout ratio was 60%. The dividend pershare was $1.20. If the firm had 70,000 shares of common stock outstanding, what was its netincome?O $35,000O $280,000O $70,000O $105,000O $140,000

Dividend Payout = 60% of Earning Per Share 1.20 = 60% * Earning Per Share Earning Per Share = 1.20 /…

Answered: A firm paid 60% of net income out in…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A firm paid 60% of net income out in dividends. Its dividend payout ratio was 60%. The dividend per share was $1.20. If the firm had 70,000 shares of common stock outstanding, what was its net income?