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Kruka [31]
3 years ago
9

The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures.Tot

al asset $400,000Stockholder's equity-common 200,000Total Stockholders' equity 280,000Sales revenue 120,000Net income 25,000Number of shares of common stock 8,000Common dividends 5,000Preferred dividends 6,000What is Marsh's payout ratio?a) 7.5%.b) 20%.c) 24%.d) 36%.
Business
1 answer:
andre [41]3 years ago
3 0

Answer:

b) 20%

Explanation:

Stockholder's equity  

Net Income $ 25,000

Common Dividends -$ 5,000

Preferred Dividends -$ 6,000

TOTAL $ 14,000

Common Dividends

-$ 5.000 / $ 25.000  = 20%

Net Income

Dividend per share $0,63 / (Earning per Share) $3,13 =  20%  

Dividend per share $0,63  ==> Common Div. ($5,000) / 8.000 (Q. Common)

Earning per share $3,13  ==> Net Income ($25,000) / 8.000 (Q. Common)

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The Great Lakes were accessible to farmers in the midwestern region and after the Erie Canal was built, farmers were able to send their produce via the Great Lakes and through the Erie Canal to New York City where it could be purchased by industries and people or shipped internationally.

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