Groeneweg Corporation Has Provided the Following Data: Dividends on Common

question 230

Multiple Choice

Groeneweg Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,500.The market price of common stock at the end of Year 2 was $9.45 per share.The company's dividend payout ratio for Year 2 is closest to:

• A)8.7%
• B)13.4%
• C)4.5%
• D)1.0%

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Definitions:

Compounding Interval

The period of time at the end of which interest is added to the principal balance of an investment or loan.

Interest

The charge for borrowing money or the return on invested capital, generally expressed as a percentage rate.

Furniture

Movable objects intended to support various human activities such as seating, eating, and sleeping, as well as to hold objects or store items.

Mortgage

A loan specifically used to purchase real estate, where the property serves as collateral until the debt is fully repaid.