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:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the mean.

Proportion

A part, share, or number considered in comparative relation to a whole, often expressed as a fraction or percentage.

Samples

Selections from a larger population used to estimate characteristics of the whole population.

P-chart

A P-chart is a type of control chart used in quality control to monitor the proportion of defective items in a process over time.