BVI Corporation had net income of $1600000 and paid dividends to common stockholders of $320000 in 2021.The weighted average number of shares outstanding in 2021 was 500000 shares.BVI Corporation's common stock is selling for $50 per share on the NASDAQ.BVI Corporation's payout ratio for 2021 is

Question

Quizplus · Accepted Answer

The payout ratio is calculated as dividends paid divided by net income. Here, it is $320,000 / $1,600,000 = 0.20 or 20%.

BVI Corporation Had Net Income of $1600000 and Paid Dividends