Ale Corporation Had Net Income of $240000 and Paid Dividends

question 10

Multiple Choice

Ale Corporation had net income of $240000 and paid dividends to common stockholders of $40000 in 2017. The weighted average number of shares outstanding in 2017 was 60000 shares. Ale Corporation's common stock is selling for $60 per share on the New York Stock Exchange. Ale Corporation's payout ratio for 2017 is

• A) $0.71 per share.
• B) 25%.
• C) 16.7%.
• D) 8%.

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Definitions:

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a baseline to compare the effects of the treatment.

Diabetes

A chronic condition characterized by high levels of sugar in the blood, due to the body's inability to produce or effectively use insulin.

Experimental Group

In research, the group that receives the variable being tested, contrasted with the control group.

Treatment

The application of remedies or interventions intended to relieve or heal a disorder, illness, or disease.