Quasar Corporation Had Net Income of $210,000 and Paid Dividends

question 99

Multiple Choice

Quasar Corporation had net income of $210,000 and paid dividends to common stockholders of $63,000 in 2015. The weighted average number of shares outstanding in 2015 was 50,000 shares. Quasar Corporation's common stock is selling for $30 per share on the New York Stock Exchange. Quasar Corporation's payout ratio for 2015 is

• A)24%.
• B)30%.
• C)26%.
• D)$3.33 per share.

---

Definitions:

Extra Vacation Week

An additional week of vacation time granted to employees beyond what is normally provided by the employer's standard policy.

Valuable Employee

An individual whose work performance, skills, or contribution significantly benefits their employer.

Liquidated

The process of converting assets into cash or paying off debts in the context of a business winding up or bankruptcy.

Unliquidated

An obligation or debt that has not yet been determined, quantified, or settled.