Question 1 Wilco Company reports the following: Retained Earnings Common Stock Paid-in Capital Net Income for year Dividend payout ratio for 2005 was: 22.2%. 27% 12% 2005 $2,000,000 $ 500,000 $3,000,000 $ 900,000 Not determinable 2004 $1,300,000 $ 500,000 $3,000,000 $ 400,000
Question 1 Wilco Company reports the following: Retained Earnings Common Stock Paid-in Capital Net Income for year Dividend payout ratio for 2005 was: 22.2%. 27% 12% 2005 $2,000,000 $ 500,000 $3,000,000 $ 900,000 Not determinable 2004 $1,300,000 $ 500,000 $3,000,000 $ 400,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 1
Wilco Company reports the following:
Retained Earnings
Common Stock
Paid-in Capital
Net Income for year
Dividend payout ratio for 2005 was:
22.2%.
27%
12%
2005
$2,000,000
$ 500,000
$3,000,000
$ 900,000
O Not determinable
2004
$1,300,000
$ 500,000
$3,000,000
$ 400,000
Expert Solution
Step 1
The Dividend Payout Ratio (DPR) is the amount of dividends paid to shareholders in relation to the total amount of net income the company generates. In other words, the dividend payout ratio measures the percentage of net income that is distributed to shareholders in the form of dividends.
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