Determine the dividend payout ratio for the common stock. Round the payout ratio to four decimal places, but enter as a percentage to two decimal places. For example, .34678 rounds to .3468 and would be entered as 34.68, indicating 34.68%. Fill in the blank 1 % 2. Determine the book value per share of Divac’s common stock. Round the book value per share to two decimals.
Divac Company has developed a statement of
| Paid-In Capital— Preferred |
Common Stock | Paid-In Capital— Common |
|||
| Balance, Jan. 1 | $100,000 | $50,000 | $400,000 | $40,000 | $200,000 |
| Stock issued | 100,000 | 10,000 | |||
| Net income | 82,000 | ||||
| Cash dividend | -62,000 | ||||
| Stock dividend | 10,000 | 5,000 | -15,000 | ||
| Balance, Dec. 31 | $110,000 | $55,000 | $500,000 | $50,000 | $205,000 |
Divac’s preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per share. There are no dividends in arrears on the stock. The common stock has a par value of $2 per share. Assume that the common stockholders have a right to the total net income of $82,000.
Required:
1. Determine the dividend payout ratio for the common stock. Round the payout ratio to four decimal places, but enter as a percentage to two decimal places. For example, .34678 rounds to .3468 and would be entered as 34.68, indicating 34.68%.
Fill in the blank 1 %
2. Determine the book value per share of Divac’s common stock. Round the book value per share to two decimals.
$fill in the blank 2 per share
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