Sabb Corporation's net income last year was $6,190,000.The dividend on common stock was $13.90 per share and the dividend on preferred stock was $1.60 per share.The market price of common stock at the end of the year was $41.50 per share.Throughout the year,300,000 shares of common stock and 100,000 shares of preferred stock were outstanding.
Required:
Compute the dividend payout ratio.Show your work!

Question

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The Answer of Sabb Corporation's net income last year was $6,190,000.The dividend on common stock was $13.90 per share and the dividend on preferred stock was $1.60 per share.The market price of common stock at the end of the year was $41.50 per share.Throughout the year,300,000 shares of common stock and 100,000 shares of preferred stock were outstanding.
Required:
Compute the dividend payout ratio.Show your work!

Sabb Corporation's Net Income Last Year Was $6,190,000