Quasar Corporation had net income of $210,000 and paid dividends to common stockholders of $63,000 in 2015. The weighted average number of shares outstanding in 2015 was 50,000 shares. Quasar Corporation's common stock is selling for $30 per share on the New York Stock Exchange. Quasar Corporation's payout ratio for 2015 is
A)24%.
B)30%.
C)26%.
D)$3.33 per share.

Question

Quizplus · Accepted Answer

Payout ratio = (Dividends paid to common stockholders / Net income) x 100

Payout ratio = (63,000 / 210,000) x 100

Payout ratio = 30%

Therefore, the answer is B.

Quasar Corporation Had Net Income of $210,000 and Paid Dividends