Question
Asked Dec 18, 2019
2 views

Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the firm's payout ratio be?

 
check_circle

Expert Answer

Step 1

Dividend payout ratio refers to the fraction of net income that a company pays to its shareholders in the form of dividends.

Step 2

Dividend payout ratio is calculated as total dividends divided by net income.

Step 3

Given that total dividends is equal to $420,000 and net income is equ...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.

Related Finance Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Need help

A: The formula to calculate required return is given below:

question_answer

Q: A company pays a constant $8.25 dividend on its stock. The company will maintain this dividend for t...

A: Hi, due to unavailability of HP10bii+ Financial calculator, we will answer this question using excel...

question_answer

Q: oblem Set for Savings Account Goals ATH 113: Section 9.4b Page 2 of 2 3. Rachel still wants that new...

A: a.Calculate the maturity period to repay the debt as follows:MS-Excel --> Formulas --> Financi...

question_answer

Q: IP2-3 Asset Management and Profitability Ratios You have the following information on Els' Putters, ...

A: Current assets can be calculated with the help of relation of sales to working capital.To calculate ...

question_answer

Q: Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the fi...

A: Pay-out ratio:The pay-out ratio is the ratio between the total dividend and net income. it is also k...

question_answer

Q: Compute the discounted payback statistic for Project D if the appropriate cost of capital is 13 perc...

A: Calculation of Discounted Payback Period:Since the discount cash flows fail to turn to positive cash...

question_answer

Q: Calculate the cost of equity: Assuming that there is an unlevered firm and a levered firm. The basic...

A: Unlevered Firm:Net Income = $6,600Value of Equity = Value of Firm = $66,000 Calculation of Cost of E...

question_answer

Q: A company wants to issue new 10-year bonds for some much-needed expansion projects. The company curr...

A: The computation of yield to maturity is as follows:

question_answer

Q: Maggie’s Skunk Removal Corp.’s 2015 income statement listed net sales = $12.5 million, gross profit ...

A: Calculation of Profit Margin, Gross Profit Margin, Operating Profit Margin, ROA and ROE:The profit m...