Calculate Payout Ratio Given the Following Information: Cash Dividends Paid

question 8

Multiple Choice

Calculate payout ratio given the following information: cash dividends paid = $19,950; sales = $250,000; cost of goods sold = $100,000; selling and administrative expenses = $50,000; interest expense = $5,000; tax rate = 30%.

• A) 70%
• B) 30%
• C) 50%
• D) 35%
• E) 65%

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Definitions:

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The power or right to give orders, make decisions, and enforce obedience.

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Traditional practices or behaviors regularly observed by a group of people or within a particular place.

Typologies

The systematic classification of types that have common characteristics.

Utilitarian

A philosophical approach that emphasizes the outcome or consequences of actions in terms of their benefits or utility, often summarized as the greatest good for the greatest number.