Last year, Blakely's Fashions earned net income of $68,400 and had 12,000 shares of stock outstanding....

Last year, Blakely's Fashions earned net income of $68,400 and had 12,000 shares of stock outstanding. The dividends per share were $2.20. What is the dividend payout ratio?

Question 13 options:

34.00 percent

38.60 percent

32.98 percent

40.21 percent

Expert Solution

Answer -

Following information is given

Net Income	$68400
Shares Oustanding	12000
DPS	$2.2

Formula used

EPS = Net Income / Shares Outstanding

= 68400 / 12000

EPS = 5.7

Dividend Payout Ratio = DPS / EPS

= 2.2 / 5.7

= 0.3860 OR 38.60% i.e. Option B

jeff jeffy answered 2 years ago

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