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.

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Definitions:

LIFO

An inventory valuation method called "Last In, First Out" where the most recently produced or purchased items are the first to be expensed as cost of goods sold.

Cordless Screwdrivers

Electric screwdrivers that operate without a direct power supply connection, using rechargeable batteries instead.

U.S.GAAP

A set of accounting standards and principles provided by the Financial Accounting Standards Board (FASB) for companies in the United States, ensuring transparency and consistency in financial reporting.

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or rendering of services.