Wilco Company Reports the Following: Dividend Payout Ratio for 2005

question 6

Multiple Choice

Wilco Company reports the following: Dividend payout ratio for 2005 was:
$\begin{array} { l c c } & 2005 & 2004 \\\text { Retained Earnings } & \$ 2,000,000 & \$ 1,300,000 \\\text { Common Stock } & \$ 500,000 & \$ 500,000 \\\text { Paid-in Capital } & \$ 3,000,000 & \$ 3,000,000 \\\text { Net Income for year } & \$ 900,000 & \$ 400,000\end{array}$

• A)27%.
• B)12%.
• C)22.2%.
• D)Not determinable

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The specific power given to an agent by a principal, derived from their agreement and can be express or implied based on their actions.

Apparent Authority

The perception by a third party that an agent has the authority to act on behalf of a principal, even if such authority has not been explicitly or implicitly granted.

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