Bertram Corporation had net income of $325,000 and paid dividends to common stockholders of $50,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. Bertram Corporation's common stock is selling for $45.50 per share on the New York Stock Exchange. Bertram Corporation's payout ratio for 2014 is

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The payout ratio is calculated as dividends divided by net income. Here, it is $50,000 / $325,000 = 15.4%.

Bertram Corporation Had Net Income of $325,000 and Paid Dividends