The Following Information Pertains to Benedict Company What Is the Payout Ratio for Benedict?
A)48%
B)20%
C)28

question 116

Multiple Choice

The following information pertains to Benedict Company.Assume that all balance sheet amounts represent average balance figures. $$\begin{array} { l r } \text { Total assets } & \$ 300,000 \\\text { Stockholders' equity-common } & 150,000 \\\text { Total stockholders' equity } & 200,000 \\\text { Sales revenue } & 100,000 \\\text { Net income } & 25,000 \\\text { Number of shares of common stock } & 6,000 \\\text { Common dividends } & 5,000 \\\text { Preferred dividends } & 7,000\end{array}$$ What is the payout ratio for Benedict?

• A)48%
• B)20%
• C)28%
• D)5%

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the per-unit production cost.

Rising Prices

A situation where the general level of prices for goods and services in an economy increases over a period of time.

Average Total Cost

The total cost of production divided by the quantity of output, encompassing both fixed and variable costs.

Average Variable Cost

The cost per unit of production that varies with the level of output, calculated by dividing the total variable costs by the number of units produced.