Stern Company has 100,000 shares of common stock and 20,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Preferred stockholders received dividends totaling $140,000 during the year. Common stockholders received dividends totaling $210,000. If the dividend payout ratio was 70%, then the net income was:
Stern Company has 100,000 shares of common stock and 20,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Preferred stockholders received dividends totaling $140,000 during the year. Common stockholders received dividends totaling $210,000. If the dividend payout ratio was 70%, then the net income was:
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 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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![Stern Company has 100,000 shares of common stock and 20,000
shares of preferred stock outstanding. There was no change in the
number of common or preferred shares outstanding during the
year. Preferred stockholders received dividends totaling $140,000
during the year. Common stockholders received dividends
totaling $210,000. If the dividend payout ratio was 70%, then the
net income was:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2dcd5d34-bb28-43be-99b5-e6442fb40ff2%2Fd165b61c-594a-4d98-bce1-666ed189a696%2Fqrf3wd7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Stern Company has 100,000 shares of common stock and 20,000
shares of preferred stock outstanding. There was no change in the
number of common or preferred shares outstanding during the
year. Preferred stockholders received dividends totaling $140,000
during the year. Common stockholders received dividends
totaling $210,000. If the dividend payout ratio was 70%, then the
net income was:
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