Silas Corporation had net income of $200,000 and paid dividends to ordinary shareholders of $40,000 in 2011.The weighted average number of shares outstanding in 2011 was 50,000 shares.Silas Corporation's ordinary shares are selling for $60 per share on the New York Stock Exchange.Silas Corporation's payout ratio for 2011 is

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Quizplus · Accepted Answer

The payout ratio is calculated as dividends paid divided by net income. Here, it is $40,000 / $200,000 = 20%.

Silas Corporation Had Net Income of $200,000 and Paid Dividends