Helmuth Inc.'s latest net income was $1,250,000,and it had 225,000 shares outstanding.The company wants to pay out 45% of its income.What dividend per share should it declare?
A)$2.14
B)$2.26
C)$2.38
D)$2.50

Question

Quizplus · Accepted Answer

The dividend per share can be calculated by first determining the total dividend payout, which is 45% of the net income, and then dividing that amount by the number of shares outstanding. The total dividend payout is $1,250,000 * 45% = $562,500. Dividing this by the number of shares outstanding (225,000) gives a dividend per share of $2.50.