Pearlman,Inc.provides the following information for 2019: $$\begin{array} { | l | r | }
\hline \text { Net income } & \$ 285,000 \
\hline \text { Market price per share of common stock } & \$ 30.00 / \text { share } \
\hline \text { Dividends paid } & \$ 1,00 / \text { share } \
\hline \text { Common stock outstanding at Jan. } 1,2019 & 120,000 \text { shares } \
\hline \text { Common stock outstanding at Dec. } 31,2019 & 130,000 \text { shares } \
\hline
\end{array}$$ 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: $$\begin{array} { | l | r | } 
\hline \text { Net income } & \$ 285,000 \
\hline \text { Market price per share of common stock } & \$ 30.00 / \text { share } \
\hline \text { Dividends paid } & \$ 1,00 / \text { share } \
\hline \text { Common stock outstanding at Jan. } 1,2019 & 120,000 \text { shares } \
\hline \text { Common stock outstanding at Dec. } 31,2019 & 130,000 \text { shares } \
\hline
\end{array}$$ 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: $$\begin{array} { | l | r | } 
\hline \text { Net income } & \$ 285,000 \
\hline \text { Market price per share of common stock } & \$ 30.00 / \text { share } \
\hline \text { Dividends paid } & \$ 1,00 / \text { share } \
\hline \text { Common stock outstanding at Jan. } 1,2019 & 120,000 \text { shares } \
\hline \text { Common stock outstanding at Dec. } 31,2019 & 130,000 \text { shares } \
\hline
\end{array}$$ 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