Financial statements for Larkins Company appear below:

Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $150.

-Larkins Company's dividend payout ratio for Year 2 was closest to:
A) 42.9%
B) 24.6%
C) 40.6%
D) 14.8%

Question

Financial statements for Larkins Company appear below:

Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $150.

-Larkins Company's dividend payout ratio for Year 2 was closest to:
A) 42.9% 
B) 24.6% 
C) 40.6% 
D) 14.8%

Quizplus · Accepted Answer

The dividend payout ratio is calculated as (Dividends / Net Income) * 100. Without specific figures, the closest percentage provided is 40.6%.

Financial Statements for Larkins Company Appear Below