Presented below are selected data from the financial statements of Provost Corp. $\begin{array}{lrr}&2018&2017\
\text { Net income } & \$ 110,000 & \$ 123,000 \
\text { Cash dividends paid on common stock } & \$ 42,000 & \$ 38,000 \
\text { Market price per share of common stock at the end of the year } & \$ 16.00 & \$ 13.00 \
\text { Shares of common stock outstanding } & 140,000 & 140,000
\end{array}$The dividend payout ratio for 2018 is

A)1.8%.
B)30.0%.
C)36.3%.
D)38.0%.

Question

Presented below are selected data from the financial statements of Provost Corp. $\begin{array}{lrr}&2018&2017\
\text { Net income } & \$ 110,000 & \$ 123,000 \
\text { Cash dividends paid on common stock } & \$ 42,000 & \$ 38,000 \
\text { Market price per share of common stock at the end of the year } & \$ 16.00 & \$ 13.00 \
\text { Shares of common stock outstanding } & 140,000 & 140,000
\end{array}$The dividend payout ratio for 2018 is

A)1.8%.
B)30.0%.
C)36.3%.
D)38.0%.

Quizplus · Accepted Answer

The Answer of Presented below are selected data from the financial statements of Provost Corp. $\begin{array}{lrr}&2018&2017\
\text { Net income } & \$ 110,000 & \$ 123,000 \
\text { Cash dividends paid on common stock } & \$ 42,000 & \$ 38,000 \
\text { Market price per share of common stock at the end of the year } & \$ 16.00 & \$ 13.00 \
\text { Shares of common stock outstanding } & 140,000 & 140,000
\end{array}$The dividend payout ratio for 2018 is

A)1.8%.
B)30.0%.
C)36.3%.
D)38.0%.

Presented Below Are Selected Data from the Financial Statements of Provost