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asambeis [7]
3 years ago
7

Emerson Inc. would like to undertake a policy of paying out 45% of its income. Its latest net income was $1,250,000, and it had

225,000 shares outstanding.
What dividend per share should it declare?
Business
1 answer:
worty [1.4K]3 years ago
6 0

Answer:

Emerson Inc. should declare $2.5 per share.

Explanation:

Dividend Payout ratio is the ratio of distribution of net income earned during the period among the stockholders.

As per given data

Net Income = $1,250,000

Payout ratio = 45%

Dividend payment = 1,250,000 x 45% = $562,500

Dividend per share = $562,500 / 225,000 = $2.5 per share

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Answer:

B. Increases in liabilities and​ stockholders' equity are credited.

Explanation:

As Liabilities and Stockholder's equity have credit balance, so a credit entry will increase their value and debit entry will decrease its balance. On the other hand assets accounts have debit balance, a credit entry will decrease its balance and debit entry will increase it. So the correct option is B. Increases in liabilities and​ stockholders' equity are credited.

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