Ale Corporation Had Net Income of $240,000 and Paid Dividends

question 84

Multiple Choice

Ale Corporation had net income of $240,000 and paid dividends to common stockholders of $40,000 in 2014. The weighted average number of shares outstanding in 2014 was 60,000 shares. Ale Corporation's common stock is selling for $60 per share on the New York Stock Exchange. Ale Corporation's payout ratio for 2014 is

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

---

Definitions:

Year-to-Year Instability

The fluctuation in an economic or financial metric on an annual basis.

Farm Employment

Employment related to agricultural activities including both farming and related work such as processing and distribution.

U.S.

The United States of America, a federal republic consisting of 50 states and a federal district, known for its significant influence on global economics, politics, and culture.