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Blake Company had net income of P600,000 in 2021. Net income has grown at a 5 percent annual rate. Dividends in 2021 were P200,000. In 2022, the net income was P700,000. This of course exceeded the 5 percent annual growth rate. It is expected that earnings will return to a 5 percent growth rate in later years. What should the dividends paid out in 2022 be, assuming (a) a stable dividend payout ratio of 20 percent, and (b) a stable peso dividend policy is maintained?  CHOOSE THE CORRECT LETTER OF ANSWER A. (a)P140,000.00 and (b) P110,000.00 B. (a)P110,000.00 and (b) P210,000.00 C. (a)P120,000.00 and (b) P110,000.00 D. (a)P140,000.00 and (b) P210,000.00 E. None of the above

Blake Company had net income of P600,000 in 2021. Net income has grown at a 5 percent annual rate. Dividends in 2021 were P200,000. In 2022, the net income was P700,000. This of course exceeded the 5 percent annual growth rate. It is expected that earnings will return to a 5 percent growth rate in later years. What should the dividends paid out in 2022 be, assuming (a) a stable dividend payout ratio of 20 percent, and (b) a stable peso dividend policy is maintained?  CHOOSE THE CORRECT LETTER OF ANSWER A. (a)P140,000.00 and (b) P110,000.00 B. (a)P110,000.00 and (b) P210,000.00 C. (a)P120,000.00 and (b) P110,000.00 D. (a)P140,000.00 and (b) P210,000.00 E. None of the above

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blake Company had net income of P600,000 in 2021. Net income has grown at a 5 percent annual rate. Dividends in 2021 were P200,000. In 2022, the net income was P700,000. This of course exceeded the 5 percent annual growth rate. It is expected that earnings will return to a 5 percent growth rate in later years. What should the dividends paid out in 2022 be, assuming (a) a stable dividend payout ratio of 20 percent, and (b) a stable peso dividend policy is maintained? 

CHOOSE THE CORRECT LETTER OF ANSWER
A. (a)P140,000.00 and (b) P110,000.00
B. (a)P110,000.00 and (b) P210,000.00
C. (a)P120,000.00 and (b) P110,000.00
D. (a)P140,000.00 and (b) P210,000.00
E. None of the above

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