Bertram Corporation Had Net Income of $325,000 and Paid Dividends

question 16

Multiple Choice

Bertram Corporation had net income of $325,000 and paid dividends to common stockholders of $39,000 in 2017. The weighted average number of shares outstanding in 2017 was 50,000 shares. Bertram Corporation's common stock is selling for $52 per share on the New York Stock Exchange. Bertram Corporation's payout ratio for 2017 is

• A) $6.5 per share.
• B) 16%.
• C) 12%.
• D) 8.3%.

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Definitions:

Utility Function

A mathematical representation in economics of a consumer's preference ranking over a set of goods or outcomes, used to analyze choices and behavior.

Utility Function

A utility function is a mathematical representation of a consumer's preference, showing the level of satisfaction or utility derived from different combinations of goods and services.

Television Watching

The activity of viewing content on a television set, often analyzed for its impact on consumer behavior and preferences.

Same Tastes

A theoretical condition where all consumers have identical preferences, simplifying analysis of market behavior and product demand.