Homework Answers
Payout ratio - last year = Dividend paid / Net income
= $108,300 / $570,000
= 19%
Dividend paid this year = Current year net income X Payout ratio
= $1,420,000 X 19%
= $269,800
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Hans Marigold, president of Marigold Corp., believes that it is a good practice for a company...
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View Policies Current Attempt in Progress Hans Sheffield, president of Sheffield Corp., believes that it is a good practice for a company to maintain a constant payout of dividends relative to its earnings. Last year, net income was $650.000, and the corporation paid $130,000 in dividends. This year, due to some unusual circumstances, the corporation had income of $1,500,000. Hans expects next year's net income to be about $750,000 What was Sheffield Corp's payout ratio last year? If it is...
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View Policies Current Attempt in Progress Hans Sheffield, president of Sheffield Corp., believes that it is a good practice for a company to maintain a constant payout of dividends relative to its earnings. Last year, net income was $650.000, and the corporation paid $130,000 in dividends. This year, due to some unusual circumstances, the corporation had income of $1,500,000. Hans expects next year's net income to be about $750,000 What was Sheffield Corp's payout ratio last year? If it is...
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