A company has forecasted net income to be $320,000. Net income was $250,000 in the prior...
A company has forecasted net income to be $320,000. Net income was $250,000 in the prior year, when they also paid dividends of $100,000. What are forecasted dividends if the company wants to keep the payout ratio constant?
a) $192,000
b) $128,000
c) $78,125
d) $100,000
Homework Answers
![Payout ratio = 40.00% [ 100000/250000] Forecasted dividends = $ 128,000! [ 320000 x 40% ]](http://img.homeworklib.com/questions/4d9b1860-6f60-11ea-838d-3ddff81ebb69.png?x-oss-process=image/resize,w_560)
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