**Understanding Payout Ratios: A Case Study****Payout Ratio Analysis of Whispering Winds Corp. for 2020**Whispering Winds Corp. reported a net income of $106,600 and distributed dividends amounting to $47,500 to common stockholders and $23,500 to preferred stockholders in the year 2020. The equity of common stockholders at the start and end of 2020 stood at $867,000 and $1,320,000, respectively. **Question:**Calculate the payout ratio for Whispering Winds Corp. for the year 2020.**Options:**1. 44.56%2. 4.75%3. 43.65%4. 15.05%**Explanation:**To determine the payout ratio, we need to use the formula:\[ \text{Payout Ratio} = \left( \frac{\text{Total Dividends Paid}}{\text{Net Income}} \right) \times 100 \]Here, the total dividends paid is the sum of dividends to common and preferred stockholders.Total Dividends Paid = $47,500 (Common) + $23,500 (Preferred)Total Dividends Paid = $71,000Net Income = $106,600Now, substituting these values into the formula:\[ \text{Payout Ratio} = \left( \frac{71,000}{106,600} \right) \times 100 \approx 66.63\% \]Therefore, an additional detail not matching with provided options suggests the choices may include an incorrect set of potential calculations, or there might be an implicit preference-based dividend exclusion for calculation.For completeness in options approach:\[ Choice 1: \frac{47,500}{106,600} \times 100 \approx 44.56\% \]\[ Choice 2: \frac{5,059.5}{106,600} \times 100 \approx 4.75\% \]\[ Choice 3: \frac{46,510}{106,600} \times 100 \approx 43.65\% \]\[ Choice 4: \frac{16,050}{106,600} \times 100 \approx 15.05\% \]Based on common payout calculations restrictions aligning to one, pick closest suitable interpretations:- **

Dividend pay-out ratio exhibits how much percentage of the available income to equity shareholders…

Whispering Winds Corp. had net income of $106600 and paid dividends of $47500 to common stockholders and $23500 to preferred stockholders in 2020. Whispering Winds Corp's common stockholders' equity at the beginning and end of 2020 was $867000 and $1320000, respectively. Whispering Winds Corp's payout ratio for 2020 was O 44.56%. O 4.75%. O 43.65%. O 15.05%.

Whispering Winds Corp. had net income of $106600 and paid dividends of $47500 to common stockholders and $23500 to preferred stockholders in 2020. Whispering Winds Corp's common stockholders' equity at the beginning and end of 2020 was $867000 and $1320000, respectively. Whispering Winds Corp's payout ratio for 2020 was O 44.56%. O 4.75%. O 43.65%. O 15.05%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In 2022, Grouper Corporation reported net income of $8.0 million, and declared and paid preferred share dividends of $2.4 million. In 2023, it reported net income of $9.9 million, and declared and paid preferred share dividends of $2.4 million. During both 2022 and 2023, Grouper had a weighted average of 1,000,000 common shares outstanding. (a) Calculate Grouper's 2022 and 2023 earnings per share. (Round answers to 2 decimal places, e.g. 52.75.) Earnings per Share eTextbook and Media 2022 2023
po In 2021, Logic Co. reported net income of $3,345,000. It also declared and paid $813,000 in dividends, $368,000 of which was to preferred stockholders. At the beginning of the year, the company reported common stock shares outstanding of 4,158,000. By the end of the year, their common stock shares outstanding had increased to 8,316,000. Based on this information, what will Logic Co. report as EPS for 2021? (AC 16) O $0.20 O $0.48 O $0.41 O $0.36
1. Concord Corporation had net income of $203000 and paid dividends to common stockholders of $35000 in 2020. The weighted average number of shares outstanding in 2020 was 50000 shares. Concord Corporation's common stock is selling for $121.80 per share on the New York Stock Exchange. Concord Corporation's price-earnings ratio is A. 3.4 times. B. 30.0 times. C. 21.0 times. D. 36.3 times.
At December 31, 2020, Carla Vista Company has $520,000 of $100 par value, 7%, cumulative preferred stock outstanding and $2,130,000 of $10 par value common stock issued. Carla Vista's net income for the year is $441,100. Compute earnings per share of common stock for 2020 under the following independent situations. (Round answers to 2 decimal places, eg. 1.50.) (a) (b) (a) (b) The dividend to preferred stockholders was declared, and there has been no change in the number of shares of common stock outstanding during the year. The dividend to preferred stockholders was not declared, and 10,500 shares of common treasury stock were held throughout the year. The preferred stock is cumulative. Earnings per share of common stock Earnings per share of common stock 50 S S
May I know the answer ?
Lonnie Shelton Corp (LSC) had Shareholder's Equity of $2200 at the end of 2019 and $2100 at the end of 2020. LSC earned net income of $870 in 2020 and paid dividends of $480. How much common stock was issued or repurchased in 2020?
Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960 shares @ $ 14 each $ 13,440 Rogers Company 880 shares @ $ 20 each 17,600 Chance Company 520 shares @ $ 10 each 5,200 Equity investments @ cost 36,240 Fair value adjustment ( 7,300 ) Equity investments @ fair value $ 28,940 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $ 2 per share dividend. 2. On April 30, Oriole, Inc. sold 320 shares of Chance Company for $ 11 per share. 3. On May 15, Oriole, Inc. purchased 100 more shares of Evers Company stock at $ 17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $ 18, Rogers $ 19, and Chance $ 9. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $ 9 per share. 6. On March 1, Rogers Company paid a $ 2…
Spring Inc. reports the following information: Net income: $750,000 Dividends on common shares: $210,000 Dividends on preferred shares: $90,000 Average number of common shares outstanding: 250,000 Spring Inc. should report earnings per share of: Question 7 options: $2.16 $1.80 $3.00 $2.64 In 2020, Big Mountain Inc. reported net income of $75,000, and declared and paid a dividend of $14,000. The balance in the retained earnings account on December 31, 2020, was $86,000. What was the opening balance in retained earnings on January 1, 2020? Question 8 options: $25,000 $147,000 $61,000 $86,000
The equity section of a company for the last 2 years shows the following: - Share capital 885 M Euros in 2020 (777 M euros in 2019) - Share premium 3,555 M euros in 2020 (2,941 M euros in 2019) - Retained earnings 6,241 M euros in 2020 (5,293 M euros is 2019) - Treasury shares 82 M euros in 2020 (50 M euros in 2019) Assuming the par value of the company shares is 2 euros. Which of the following statement is correct regarding 2020? do calculation please The company has issued 54 million new shares The company has issued 108 million new shares The company has issued 722 million new shares The company has issued 361 million new shares
In 2025, Bramble Corporation reported net income of $1,130,450. It declared and paid preferred stock dividends of $272,300. During 2025, Bramble had a weighted average of 190,700 common shares outstanding. Compute Bramble's 2025 earnings per share. (Round earnings per share to 2 decimal places, e.g. 1.48.) Bramble's 2025 earnings per share $
The net income for the year-end 2020 – P450,000 The preferred dividends paid in 2020 – P30,000 At the beginning of the year 2020, the common shares outstanding were 50,000 shares. In the middle of the year, H. Corp issued another 40,000 common shares. Find out the earnings per share (EPS) and Explain.
Rakesh