Spina Corporation's net income last year was $5,472,000. The dividend on common stock was $10.70 per share and the dividend on preferred stock was $3.00 per share. The market price of common stock at the end of the year was $49.20 per share. Throughout the year, 400,000 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 Spina Corporation's net income last year was $5,472,000. The dividend on common stock was $10.70 per share and the dividend on preferred stock was $3.00 per share. The market price of common stock at the end of the year was $49.20 per share. Throughout the year, 400,000 shares of common stock and 100,000 shares of preferred stock were outstanding.
Required:
Compute the dividend payout ratio. Show your work!

Spina Corporation's Net Income Last Year Was $5,472,000