Smith Reported the Following for 2012 The Price Earnings Ratio and Dividend Payout Were:
A)16

question 37

Multiple Choice

Smith reported the following for 2012. $\begin{array}{lr}\text { Beginning market price } & \$ 20.00 \\\text { Average market price } & 24.00 \\\text { Ending market price } & 26.00\\\text { Earnings per share: }\\\text { Basic } & 1.80 \\\text { Diluted } & 1.60 \\\text { Cash dividends per share } & 1.00\\\end{array}$ The price earnings ratio and dividend payout were:

• A)16.25 and 62.50%.
• B)16.25 and 65.00%.
• C)17.00 and 62.50%.
• D)15.00 and 62.50%.
• E)15.00 and 60.00%.

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Definitions:

Interest Expense

The amount a company has to spend over time for taking out loans.

Sales Taxes Payable

This account reflects the amount of sales tax collected from customers by a company on behalf of state and local governments, which is to be remitted to those governments.

Remittance

The process of sending payment from one party to another, often from a buyer to a seller or from an employer to an employee.

Liability

An entity's financial obligation or debt, incurred during business operations, that it is obligated to pay to another entity.