Question

A firm reports $40,000,000 in sales for 2019. The firm has a net profit margin of...

A firm reports $40,000,000 in sales for 2019. The firm has a net profit margin of 5% and 4,000,000 share outstanding. If the firm has a dividend payout ratio of 20%, what is the dividends per share for the firm?

Question 2 options: $0.10 $0.05 $0.15 $0.25 $0.20

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Answer #1

Step 1: Find Net Income:

Step 2: Find the amount available for Dividend distribution:

Step 3: Find Dividends per share.

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