Helmuth Inc's Latest Net Income Was $1,250,000,and It Had 225,000

question 65

Multiple Choice

Helmuth Inc's latest net income was $1,250,000,and it had 225,000 shares outstanding.The company wants to pay out 45% of its income.What dividend per share should it declare?

• A)$2.14
• B)$2.26
• C)$2.38
• D)$2.50
• E)$2.63

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Definitions:

Compounded Monthly

Interest on an investment or loan is calculated and added to the principal amount at the end of each month.

Compounded Annually

An interest calculation method where interest is added to the principal sum once every year, resulting in interest earning interest.

Personal Loans

Unsecured loans given to individuals based on their credit history and income, rather than requiring collateral.

Effective Rate

The interest rate on a loan or financial product, restated from the nominal rate as an annual rate accounting for compound interest.