Silas Corporation Had Net Income of $200,000 and Paid Dividends

question 52

Multiple Choice

Silas Corporation had net income of $200,000 and paid dividends to ordinary shareholders of $40,000 in 2011.The weighted average number of shares outstanding in 2011 was 50,000 shares.Silas Corporation's ordinary shares are selling for $60 per share on the New York Stock Exchange.Silas Corporation's payout ratio for 2011 is

• A)$4 per share.
• B) 25%.
• C)20%.
• D)12.5%.