Dooley Corporation Had Net Income of $200,000 and Paid Dividends

question 81

Multiple Choice

Dooley Corporation had net income of $200,000 and paid dividends to ordinary shareholders of $40,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. Dooley Corporation's ordinary shares are selling for $35 per share on the New York Stock Exchange. Dooley Corporation's payout ratio for 2014 is

• A) $4 per share.
• B) 20%.
• C) 25%.
• D) 10%.

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Definitions:

Promise

A declaration or assurance that one will do something or that a particular thing will happen.

Offer

A proposal by one party to another to enter into a legally binding contract with specific terms.

Offeree

The party to whom the offer is made.

Rejected

Refers to being dismissed or turned down, typically in response to a proposal, offer, or application.