Helmuth Inc's latest net income was $1,250,000,and it had 225,000 shares outstanding.The company wants to pay out 45% of its income.What dividend per share should it declare?
A)$2.14
B)$2.26
C)$2.38
D)$2.50
E)$2.63

Question

Quizplus · Accepted Answer

To calculate the dividend per share, we first need to find out how much of the net income Helmuth Inc wants to pay out as dividends.

45% of $1,250,000 = $562,500 (this is the amount Helmuth Inc wants to pay out as dividends)

Next, we need to divide this amount by the number of shares outstanding:

$562,500 / 225,000 shares = $2.50 per share

Therefore, the dividend per share that Helmuth Inc should declare is $2.50.

(Note: None of the other answer choices are correct. To arrive at those numbers, a different calculation was done or an incorrect calculation was made.)

Helmuth Inc's Latest Net Income Was $1,250,000,and It Had 225,000