Use the Following Information for Questions

question 131

Multiple Choice

Use the following information for questions
During 2013, Pattar Corp reported after-tax profit of $450,000 and paid $75,000 in common dividends. The weighted average number of common shares issued in 2013 was 150,000. There are no preferred shares issued. At year end, Pattar's common shares are selling for $60 per share on the Toronto Stock Exchange.
-Pattar's payout ratio for 2013 is

• A)$0.50.
• B)0.8%.
• C)6.0%.
• D)16.7%.

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Definitions:

Days' Sales In Inventory

A financial ratio that measures the average number of days a company takes to sell its inventory.

Sales Trend Percent

A metric that measures the percentage change in sales over a specific period, indicating growth or decline trends.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations based on its current income.

Gross Margin

The difference between total revenue and the cost of goods sold, divided by total revenue, expressed as a percentage.