Pearlman, Inc. provides the following information for 2019: $$\begin{array} { | l | r | }
\hline \text { Net income } & \$ 285,000 \
\hline \text { Market price per share of common stock } & \$ 40.00 / \text { share } \
\hline \text { Dividends paid } & \$ 1,00 / \text { share } \
\hline \text { Common stock outstanding at Jan. } 1,2019 & 130,000 \text { shares } \
\hline \text { Common stock outstanding at Dec. } 31,2019 & 140,000 \text { shares } \
\hline
\end{array}$$ The company has no preferred stock outstanding. Calculate the dividend payout ratio. (Round any intermediate calculations and your final answer to two decimal places.)

Question

Pearlman, Inc. provides the following information for 2019: $$\begin{array} { | l | r | } 
\hline \text { Net income } & \$ 285,000 \
\hline \text { Market price per share of common stock } & \$ 40.00 / \text { share } \
\hline \text { Dividends paid } & \$ 1,00 / \text { share } \
\hline \text { Common stock outstanding at Jan. } 1,2019 & 130,000 \text { shares } \
\hline \text { Common stock outstanding at Dec. } 31,2019 & 140,000 \text { shares } \
\hline
\end{array}$$ The company has no preferred stock outstanding. Calculate the dividend payout ratio. (Round any intermediate calculations and your final answer to two decimal places.)

Quizplus · Accepted Answer

The Answer of Pearlman, Inc. provides the following information for 2019: $$\begin{array} { | l | r | } 
\hline \text { Net income } & \$ 285,000 \
\hline \text { Market price per share of common stock } & \$ 40.00 / \text { share } \
\hline \text { Dividends paid } & \$ 1,00 / \text { share } \
\hline \text { Common stock outstanding at Jan. } 1,2019 & 130,000 \text { shares } \
\hline \text { Common stock outstanding at Dec. } 31,2019 & 140,000 \text { shares } \
\hline
\end{array}$$ The company has no preferred stock outstanding. Calculate the dividend payout ratio. (Round any intermediate calculations and your final answer to two decimal places.)

Pearlman, Inc The Company Has No Preferred Stock Outstanding