Uhri Corporation Has Provided the Following Data: Dividends on Common

question 94

Multiple Choice

Uhri Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,000. The market price of common stock at the end of Year 2 was $6.08 per share. The company's dividend payout ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) 7.8%
• B) 1.3%
• C) 11.1%
• D) 0.8%

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Definitions:

Home Mortgage Loans

Loans provided by financial institutions to individuals for the purpose of purchasing residential properties, secured by the property itself.

Savings Banks

Financial institutions primarily engaged in accepting savings deposits and making loans and other investments.

Money Market Mutual Funds

Investment funds that pool money from investors to purchase short-term, high-quality debt securities like treasury bills and commercial paper.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits and checking accounts.