Blandon Corporation Has 100,000 Common Shares and 10,000, $1 Preferred

question 36

Multiple Choice

Blandon Corporation has 100,000 common shares and 10,000, $1 preferred shares currently issued. During the year, the company paid and declared a 10% stock dividend when the market price of the common shares was $7.75. As well, the company paid the preferred dividend and paid $80,000 in cash to the common shareholders. If Blandon earned $360,000 during the year, its payout ratio is

• A) 25.0%.
• B) 46.5%.
• C) 22.2%.
• D) 32.0%.

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Definitions:

Net Capital Outflow

The difference between the domestic country's purchase of foreign assets and foreign purchases of the domestic country's assets over a certain period.

Net Exports

The value of a country's total exports minus its total imports, representing the trade balance within a specific period.

Tariffs

Taxes or duties imposed on imported goods to make them more expensive compared to domestic goods, often used to protect local industries.

Trade Balance

The difference in value between a country's imports and its exports; a surplus indicates more exports than imports, and a deficit the opposite.