BDJ, Inc. has 31,000 shares of stock outstanding with a market price of $15 per share....

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BDJ, Inc. has 31,000 shares of stock outstanding with a market price of $15 per share. If net income for the year is $155,000

business accounting

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Answer 1

Answer #1

Answer:

Dividend per share on BDJ Inc.'s stock
              =   Net Income x (1 (-) Retention Ratio) / Shares outstanding
              =    ($ 155,000 x ( 1- 80 % ) ) / 31,000 shares
              =     $ 31,000 / 31,000 shares
              =   $ 1 per Share

Dividend per share on BDJ Inc.'s stock = $ 1 per Share

Option (b) is Correct

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Answer 2

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