Bertram Corporation Had Net Income of $325,000 and Paid Dividends

question 142

Multiple Choice

Bertram Corporation had net income of $325,000 and paid dividends to common stockholders of $39,000 in 2022.The weighted average number of shares outstanding in 2022 was 50,000 shares.Bertram Corporation's common stock is selling for $52 per share on the New York Stock Exchange.Bertram Corporation's payout ratio for 2022 is

• A)$6.5 per share.
• B)16%.
• C)12%.
• D)8.3%.

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Definitions:

Predicted Value

The value estimated using a model or equation based on independent variables, in the context of regression analysis.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effects on the dependent variable.

Slope

The measure of the steepness or inclination of a line, represented as the ratio of vertical change to horizontal change between two points.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.