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

question 188

Multiple Choice

Bertram Corporation had net income of $325,000 and paid dividends to common stockholders of $50,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. Bertram Corporation's common stock is selling for $45.50 per share on the New York Stock Exchange. Bertram Corporation's payout ratio for 2014 is

• A) $6.5 per share.
• B) 18%.
• C) 15.4%.
• D) 40%.

---

Definitions:

Monte Carlo Forecasting

A technique using random sampling and statistical modeling to predict outcomes in complex systems or processes.

Monte Carlo Simulation

A computational algorithm that uses repeated random sampling to obtain numerical results, typically used to assess risk or uncertainty in prediction and forecasting models.

Crystal Ball

A forecasting and simulation software by Oracle that is used for predictive modeling, simulation, and optimization.

Critical Path

The longest sequence of activities in a project plan that must be completed on time for the project to finish by its due date.