Calculate Payout Ratio Given the Following Information: Cash Dividends Paid

question 168

Multiple Choice

Calculate payout ratio given the following information: cash dividends paid = $4,200; sales = $80,000; cost of goods sold = $30,000; selling and administrative expenses = $8,000; interest
Expense = $2,000; tax rate = 30%.

• A) 15%
• B) 35%
• C) 85%
• D) 75%
• E) 45%

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Definitions:

Independent Companies

Businesses that operate on their own, without being controlled by or affiliated with a larger conglomerate or parent company.

Expatriates

Individuals who live and work outside their native country, often for a specified period and for professional reasons.

International Assignments

Employment tasks or roles that require an individual to live and work in a foreign country, typically for an extended period.

Multidomestic Corporation

A company that operates in multiple countries, adapting its products and services to each local market.