Partridge Ltd provides the following information for the year 2016:
$$\begin{array} { | l | l | }
\hline \text { Net profit } & \$ 195,000 \
\hline \text { Market price per share of ordinary shares } & \$ 30.00 / \text { share } \
\hline \text { Dividends paid } & \$ 1.1 / \text { share } \
\hline \text { Ordinary shares outstanding at 1 Jan 2016 } & 120,000 \text { shares } \
\hline \text { Ordinary shares outstanding at 31 Dec 2016 } & 140,000 \text { shares } \
\hline
\end{array}$$
The company has no preference shares outstanding.Calculate the dividend payout ratio.

Question

Partridge Ltd provides the following information for the year 2016:
$$\begin{array} { | l | l | } 
\hline \text { Net profit } & \$ 195,000 \
\hline \text { Market price per share of ordinary shares } & \$ 30.00 / \text { share } \
\hline \text { Dividends paid } & \$ 1.1 / \text { share } \
\hline \text { Ordinary shares outstanding at 1 Jan 2016 } & 120,000 \text { shares } \
\hline \text { Ordinary shares outstanding at 31 Dec 2016 } & 140,000 \text { shares } \
\hline
\end{array}$$
The company has no preference shares outstanding.Calculate the dividend payout ratio.

Quizplus · Accepted Answer

The Answer of Partridge Ltd provides the following information for the year 2016:
$$\begin{array} { | l | l | } 
\hline \text { Net profit } & \$ 195,000 \
\hline \text { Market price per share of ordinary shares } & \$ 30.00 / \text { share } \
\hline \text { Dividends paid } & \$ 1.1 / \text { share } \
\hline \text { Ordinary shares outstanding at 1 Jan 2016 } & 120,000 \text { shares } \
\hline \text { Ordinary shares outstanding at 31 Dec 2016 } & 140,000 \text { shares } \
\hline
\end{array}$$
The company has no preference shares outstanding.Calculate the dividend payout ratio.

Partridge Ltd Provides the Following Information for the Year 2016