Global Tech Inc. has declared an annual dividend of $1.50 per share. Their after-tax profits for the year were $240,000 and they have 40,000 shares in issue. 1. Calculate the profit per share. 2. Determine the payout ratio.

Global Tech Inc. has declared an annual dividend of $1.50 per share. Their after-tax profits for the year were $240,000 and they have 40,000 shares in issue. 1. Calculate the profit per share. 2. Determine the payout ratio.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Question

Payout ratio

Global Tech Inc. has declared an annual dividend of $1.50 per share. Their
after-tax profits for the year were $240,000 and they have 40,000 shares in
issue.
1. Calculate the profit per share.
2. Determine the payout ratio.

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
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