JB Corporation has a retained earnings balance of $2,000,000.The company reported net income of $600,000,sales of $4,000,000,and has 200,000 shares of common stock outstanding.The company announced a dividend of $2.00 per share.Therefore,the company's dividend payout ratio is

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The dividend payout ratio is calculated by dividing the total dividends paid by the net income. In this case, the total dividends paid are $2.00 per share multiplied by 200,000 shares, which equals $400,000. The net income is $600,000. Therefore, the dividend payout ratio is $400,000/$600,000 = 66.7%.

JB Corporation Has a Retained Earnings Balance of $2,000,000