Smith Motors Inc A)1279%
B)13

Smith Motors Inc. manufactures, distributes, and services automotive parts and engines worldwide. Smiths' income statement for the year just ending is shown below. What was Smith Motors' dividend payout rate in Year 1? Smith Motors Inc.
Income Statement
Year 1 ($000,000's)
$$\begin{array} { | c | c | } \hline \text { Revenue } & \$ 19,115 \\\hline \text { COGS } & 14,255 \\\hline \text { SG\&A } & 2,245 \\\hline \text { Dep. Exp. } & 344 \\\hline \text { EBIT } & 2,271 \\\hline \text { Int. Exp. } & 47 \\\hline \text { Pre-Tax Income } & 2,223 \\\hline \text { Income Tax } & 767 \\\hline \text { Net Income } & 1,456 \\\hline & \\\hline \text { Shares Outstanding (millions) } & 175 \\\hline \text { Total Common Dividends } & \$ 290.50 \\\hline\end{array}$$

A) 12.79%
B) 13.07%
C) 14.80%
D) 17.50%
E) 19.95%