A Waterloo firm with net income of $500,000 pays 48% of net income out in dividends. If the firm has 150,000 shares of common stock outstanding, what is the dividend paid per share of stock?
A) $0.30
B) $1.44
C) $1.60
D) $1.73
E) $3.33

Question

Quizplus · Accepted Answer

The firm pays 48% of $500,000 in dividends, which is $240,000. Dividing $240,000 by 150,000 shares gives a dividend of $1.60 per share.

A Waterloo Firm with Net Income of $500,000 Pays 48