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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%

FINANCIAL ACCOUNTING
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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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%
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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