Ferman Corporation Had Net Income of $160,000 and Paid Dividends

question 149

Multiple Choice

Ferman Corporation had net income of $160,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2014. Ferman Corporation's common stockholders' equity at the beginning and end of 2014 was $870,000 and $1,130,000, respectively. Ferman Corporation's payout ratio for 2014 was

• A) 5.0%.
• B) 43.8%.
• C) 31.3%.
• D) 12.5%.

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Definitions:

Anterior Cingulate Cortex

A region of the brain involved in emotion formation and processing, learning, and memory.

Pain Receptors

Specialized nerve endings found throughout the body that detect painful stimuli and send signals to the brain, officially known as nociceptors.

Afferent

Referring to nerve fibers that carry sensory signals toward the central nervous system.

Efferent

Referring to nerve fibers that carry impulses away from the central nervous system to the effector organs (muscles, glands).