Knowledge Check 01James Company reported a net income of $700,000 for the year. During the year, the company declared a dividend of $3.80 pershare to the 50,000 common shares outstanding. The dividends were paid by the end of the year. What was the company's dividendpayout ratio?50%O 25%O 27%O 67%Knowledge Check 02Dennis Company reported a net income of $550,000 for the year. During the year, the company had an average of 200,000 commonshares outstanding. All the dividends declared were paid by the end of the year, including $3.60 per share on its common stock. At theend of the year, the company's common stock is selling at $62 per share. What was the company's dividend yield ratio?O 38%O 3.6%O 2.6%O 5.8%

Lets understand the basics.Dividend payout ratio indicates how much percentage of net income is…

Knowledge Check 01 James Company reported a net income of $700,000 for the year. During the year, the company declared a dividend of $3.80 per share to the 50,000 common shares outstanding. The dividends were paid by the end of the year. What was the company's dividend payout ratio? O 50% O 25% O 27% O 67%

Knowledge Check 01 James Company reported a net income of $700,000 for the year. During the year, the company declared a dividend of $3.80 per share to the 50,000 common shares outstanding. The dividends were paid by the end of the year. What was the company's dividend payout ratio? O 50% O 25% O 27% O 67%

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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