Miley Corporation Had Net Income of $250,000 and Paid Dividends

question 200

Multiple Choice

Miley Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2010. The weighted average number of shares outstanding in 2010 was 50,000 shares. Miley Corporation's common stock is selling for $30 per share on the New York Stock Exchange.
Miley Corporation's payout ratio for 2010 is

• A) 25%.
• B) 20%.
• C) 12.5%.
• D) $5 per share.

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Definitions:

Progesterone

A steroid hormone released by the corpus luteum that regulates the condition of the inner lining (endometrium) of the uterus, preparing it for pregnancy.

Prolactin

A hormone produced by the anterior pituitary gland, primarily associated with lactation and the development of the mammary glands.

Placenta

A vital organ that develops in the uterus during pregnancy, facilitating the exchange of nutrients, oxygen, and waste between mother and fetus.

Umbilical Cord

A tube that connects the fetus to the placenta.