Sperle Corporation Has Provided the Following Data Concerning Its Stockholders

question 127

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:

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

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Definitions:

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states under a given number of trials.

Sampling Distribution

Sampling Distribution is the probability distribution of a given statistic based on a random sample, used to make inferences about a population.

Sample Proportion

The ratio of members in a sample exhibiting a certain trait to the total number of members in the sample.

Central Limit Theorem

A principle stating that the distribution of sample means approaches a normal distribution as the sample size becomes larger, regardless of the population's distribution.