Shannon Corporation had profit of $ 250,000 and paid dividends to common shareholders of $ 50,000 in 2021. The weighted average number of shares issued in 2021 was 50,000 shares. Shannon Corporation's common shares are selling for $ 40 per share on the Toronto Stock Exchange. Shannon Corporation's payout ratio is

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The payout ratio is calculated as dividends divided by profit. Here, $50,000 dividends / $250,000 profit = 20%.

Shannon Corporation Had Profit of $ 250,000 and Paid Dividends