Ayayai Corp. had net income of $1680000 and paid dividends to common stockholders of $336000 in 2022. The weighted average number of shares outstanding in 2022 was 840000 shares. Ayayai Corp. common stock is selling for $50 per share on the NASDAQ. Ayayai Corp. payout ratio for 2022 is
A. $2 per share.
B. 20%.
C. 5%.
D. 31%.
Answer :- B. 20%
Dividend payout ratio = (Dividend per share / Earning per share) | ||
= (0.40 / $2)*100 | ||
= 20% |
A. | Dividend paid | $336,000 |
B. | Weighted average number of shares | 840,000 |
C. | Dividend per share (A/B) | 0.40 |
A. | Net income | $1,680,000 |
B. | Weighted average number of shares | 840,000 |
C. | Earning per share A/B) | $2 |
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