Bertram Corporation Had Net Income of $325000 and Paid Dividends

question 189

Multiple Choice

Bertram Corporation had net income of $325000 and paid dividends to common stockholders of $39000 in 2021.The weighted average number of shares outstanding in 2021 was 50000 shares.Bertram Corporation's common stock is selling for $52 per share on the New York Stock Exchange.Bertram Corporation's payout ratio for 2021 is

• A)$6.5 per share.
• B)16%.
• C)12%.
• D)8.3%.

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Definitions:

Nonlabor Resources

Assets or materials used in production that do not involve human labor, such as machinery, raw materials, and buildings.

Average Product

This metric calculates the output produced per unit of input, such as labor or capital, used in the production process, often used to measure productivity levels.

Law of Diminishing Returns

A principle stating that as more units of a variable input are added to a fixed input, the additional output produced by each new unit will eventually decrease.

Plant Size

The scale or capacity of a factory or production facility, which can affect production efficiency, costs, and the ability to meet demand.