Summit Ltd. declared an annual dividend of $0.75 per share. The company reported an after-tax profit of $90,000 and has 18,000 shares in circulation. 1. Calculate the profit per share. 2. Determine the payout ratio.

Summit Ltd. declared an annual dividend of $0.75 per share. The company reported an after-tax profit of $90,000 and has 18,000 shares in circulation. 1. Calculate the profit per share. 2. Determine the payout ratio.

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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Question

Summit Ltd. declared an annual dividend of $0.75 per
share. The company reported an after-tax profit of
$90,000 and has 18,000 shares in circulation.
1. Calculate the profit per share.
2. Determine the payout ratio.

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