Last Year, a Firm Earned $31,200 in Net Income on Sales

question 34

Multiple Choice

Last year, a firm earned $31,200 in net income on sales of $217,600. The company paid $7,500 in dividends. What is the dividend payout ratio?

• A) 3.45 percent
• B) 4.71 percent
• C) 14.34 percent
• D) 22.85 percent
• E) 24.04 percent

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Definitions:

Hybrid Business Form

A type of organizational structure that blends elements of different traditional business forms, aiming for a mix of flexibility, liability protection, and tax benefits.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Business Plan

A detailed document that outlines an organization's objectives, strategies, target market, financial forecasts, and operational plans.

Future Business Operations

Projected or planned activities and procedures for running a business in the future.