Selected data from the financial statements of Rapid Sign Corporation are presented below:Current Year Prior Year Net income $110,000 $123,000 Cash dividends paid on common stock 42,000 38,000 Average number of common shares outstanding 140,000 145,000 Treasury Stock 70,000 0 Market price per share of common stock at year end 16.00 13.00What is the total payout ratio for the current year? a. 88% b. 102% c. 30% d. 66%
Selected data from the financial statements of Rapid Sign Corporation are presented below:Current Year Prior Year Net income $110,000 $123,000 Cash dividends paid on common stock 42,000 38,000 Average number of common shares outstanding 140,000 145,000 Treasury Stock 70,000 0 Market price per share of common stock at year end 16.00 13.00What is the total payout ratio for the current year? a. 88% b. 102% c. 30% d. 66%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Selected data from the financial statements of Rapid Sign Corporation are presented
below:Current Year Prior Year Net income $110,000 $123,000 Cash dividends paid on
common stock 42,000 38,000 Average number of common shares outstanding
140,000 145,000 Treasury Stock 70,000 0 Market price per share of common stock at
year end 16.00 13.00What is the total payout ratio for the current year? a. 88% b.
102% c. 30% d. 66%
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