Sperle Corporation Has Provided the Following Data Concerning Its Stockholders

question 221

Multiple Choice

Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share.The company's dividend payout ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) 1.6%
• B) 21.1%
• C) 2.6%
• D) 14.7%

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Definitions:

Tax Benefits

Financial advantages provided by the tax system to encourage or discourage certain behaviors, such as reduced tax rates for certain investments.

Socializing

The process of interacting with others to learn and reinforce societal norms, behaviors, and expectations.

Helping Others

The act of providing assistance, support, or benefits to individuals without expecting personal gain, reflecting altruism and kindness.

Financially Well Off

refers to individuals or families who possess substantial financial resources, assets, or wealth, enabling a comfortable living standard beyond basic needs.