A Waterloo fiRm with Net Income of $500,000 Pays 48

question 322

Multiple Choice

A Waterloo firm with net income of $500,000 pays 48% of net income out in dividends. If the firm has 150,000 shares of common stock outstanding, what is the dividend paid per share of stock?

• A) $0.30
• B) $1.44
• C) $1.60
• D) $1.73
• E) $3.33

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Definitions:

Afterimage

A visual illusion where an image continues to appear in one's vision after exposure to the original image has ceased.

Gestalt Concept

A principle in psychology that describes the human ability to perceive patterns or wholes in complex visual inputs instead of merely additive sensory inputs.

Closure

A psychological phenomenon where the mind seeks to perceive a complete image or idea even when certain components are missing or incomplete.

Kinesthetic

Relates to the perception of body position and movement, often referred to as muscle sense.