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leonid [27]
3 years ago
6

Starbuck Corporation had a net income of $250,000 and paid dividends to common stockholders of $50,000 in Year 1. The weighted a

verage number of shares outstanding in Year 1 was 50,000 shares. Starbuck Corporation's common stock is selling for $40 per share on the New York Stock Exchange. Starbuck's dividend payout ratio for Year 1 is _____. (Round your answer to three decimal places.)
Business
1 answer:
Andrej [43]3 years ago
5 0

Answer:

20%

Explanation:

The payout ratio can either computed as dividend per share divided by earnings per share or total dividends paid to common stock holders divided by net income for the year.

using the latter formula,the payout ratio of Starbuck Corporation is computed thus:

dividend payout ratio=dividends paid/net income

dividends paid to common stock holders were $50,000

net income for Starbuck for the year was $250,000

dividend payout ratio=$50,000/$250,000=20%

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Creating an emergency fund should be a top priority, because you need to have extra money in case an emergency comes up that requires money.

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Answer:

Inter-rater reliability.

Explanation:

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3 0
3 years ago
Rick Co. had 30 million shares of $1 par common stock outstanding at January 1, 2021. In October 2021, Rick Co.'s Board of Direc
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Answer:

The journal entry is as follows:

Retained earnings A/c Dr. $18 million

        To common stock                        $0.30 million

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(To record the stock dividend issued at 1%)

Working notes:

Shares issued = 1% of 30 million

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8 0
3 years ago
Classify each of the following in terms of their effect on interest rates (increase or decrease): I. Covenants on borrowing beco
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3 years ago
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Irina-Kira [14]

Answer:

True

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3 years ago
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