Question

Ayayai Corp. had net income of $1680000 and paid dividends to common stockholders of $336000 in...

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%.

Homework Answers

Answer #1

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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