From the Information Below, Compute the Payout Ratio for Kevin's

question 185

Multiple Choice

From the information below, compute the payout ratio for Kevin's Trailers. $$\begin{array} { l r } \text { Net Income } & \$ 200 \\\text { Cash Dividends (common) } & 40 \\\text { Retained Earnings } & 500 \\\text { Stock Dividends (common) } & 10\end{array}$$

• A) 25%.
• B) 20%.
• C) 8%.
• D) 2%.

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Definitions:

Minimum Wage

The lowest legally enforceable wage that employers can pay their workers, aimed at protecting workers from exploitation.

U-5 Unemployment Rate

A measure of unemployment that includes those who are not working, available to work, and have looked for work within the past 12 months, plus marginally attached workers and those employed part-time for economic reasons.

Unemployment Insurance

A form of government assistance that offers income support to individuals who are unemployed through no fault of their own and meet specific eligibility requirements.

Labor Force Participation Rate

a measure of the active portion of an economy's labor force, calculated as the labor force divided by the total working-age population, expressed as a percentage.