Grandview Company Reported Net Earnings of $425,000 for 2014 A)Option a
B)Option B
C)Option C
D)Option D
Dividends Paid

Grandview Company reported net earnings of $425,000 for 2014.Their retained earnings were $1,125,000 on January 1, 2014, and on $1,425,000 on December 31, 2014.Grandview had 50,000 common shares outstanding throughout the year with a recorded value of $200,000.What were their dividend payout ratio and book value per share for 2014? $\begin{array}{lr}\text { Dividend } & \text { Book Value } \\\text { Pavout Ratio } & \text { per Share }\\\text { A) } 0 & \$ 4.00 \\\text { B) } 0 & \$ 32.50 \\\text { C) } 29.4 \% & \$ 4.00 \\\text { D) } 29.4 \% & \$ 32.50\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D
Dividends paid = Net income minus the change in retained earnings = $425,000 -$300,000 = $125,000, payout ratio = $125,000/$425,000 = 29.4 %, book value per share = ($200,000 + $1,425,000) / 50,000 = $32.50