Partridge Company Provides the Following Information for the Year 2016

question 29

Multiple Choice

Partridge Company provides the following information for the year 2016: Earnings per share $0.24/share
Market price of ordinary shares: $12.00/share
Dividends paid: $0.80/share
(No preference shares issued)
How much was the dividend payout for one share?

• A)0.30
• B)3.95
• C)1.67
• D)3.33

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Definitions:

Sales

The exchange of a commodity or service for money; the action of selling something.

Variable Costing

A costing method that includes only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed manufacturing overhead as a period expense.

Generally Accepted Accounting Principles

A set of accounting standards, guidelines, and procedures used in the preparation of financial statements to ensure consistency and transparency.

Stockholders

Individuals or entities that own shares in a corporation, giving them various rights like voting on company matters and receiving dividends.