Question

The following information relates to the company Net Income $100,000 Preferred stock dividends $5,000 Average Common...

The following information relates to the company

Net Income $100,000

Preferred stock dividends $5,000

Average Common Stockholder's Equity $2,100,000

Dividend Per Common Share $1.50

Earnings Per Share $3.00

Market price per common share, year-end $30.00

Calculate the company's dividend payout.

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Answer #1

Answer

  • Dividend payout
    = Dividend per common share / Earnings per share
    = $ 1.50 / $ 3.00
    = 0.5 or 50% Answer
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