JLI CorpHad Earnings Per Share of $4 Per Share Last Year

question 11

Multiple Choice

JLI Corp.had earnings per share of $4 per share last year and paid a dividend of $1 per share.For the current year,JLI Corp.generated earnings per share of $6 and paid a dividend of $1 per share.This is an example of what type of dividend policy?

• A) constant dividend payout ratio
• B) stable dollar dividend per share
• C) small, regular dividend plus a year-end extra
• D) payout ratio equal to zero

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Definitions:

Gas Grills

Outdoor cooking appliances powered by gas fuel, designed for grilling food.

LIFO Periodic

A method of inventory valuation where the last items placed in inventory are the first ones to be recorded as sold, used in periodic inventory accounting systems.

Cost of Goods Sold

Expenses directly linked to the creation of goods sold by a business, such as materials and labor.

Inventory Units

The individual items or quantifiable segments of products that a business holds in its inventory, each possibly having a different value or cost basis.