Ferman Corporation Had Net Income of $140,000 and Paid Dividends

question 166

Multiple Choice

Ferman Corporation had net income of $140,000 and paid dividends of $40,000 to common stockholders and $20,000 to preferred stockholders in 2020.Ferman Corporation's common stockholders' equity at the beginning and end of 2020 was $870,000 and $1,130,000, respectively.Ferman Corporation's payout ratio for 2020 was

• A)4.0%.
• B)42.9%.
• C)28.6%.
• D)14.3%.

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