Ask Question
11 July, 02:54

Bvi corporation had net income of $1,600,000 and paid dividends to common stockholders of $400,000 in 2014. the weighted average number of shares outstanding in 2014 was 500,000 shares. bvi corporation's common stock is selling for $50 per share on the nasdaq. bvi corporation's payout ratio for 2014 is

+1
Answers (1)
  1. 11 July, 03:04
    0
    Calculation of Bvi corporation's payout ratio for 2014:

    The formula to calculate the Payout ratio is as follows:

    Payout Ratio = (Total Divided Paid / Net Income) * 100

    Bvi corporation's payout ratio for 2014 can be calculated as follows:

    Payout Ratio = (Total Divided Paid / Net Income) * 100

    = (400000/1600000) * 100

    = 0.25*100

    =25%

    Hence, Bvi corporation's payout ratio for 2014 is 25%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Bvi corporation had net income of $1,600,000 and paid dividends to common stockholders of $400,000 in 2014. the weighted average number of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers