Partridge Company Provides the Following Information for the Year 2014

question 129

Multiple Choice

Partridge Company provides the following information for the year 2014:
$$\begin{array} { l l } \text { Net income: } & \$ 31,200 \\\text { Market price of common stock: } & \$ 12.00 / \text { share } \\\text { Dividends paid: } & \$ 0.80 / \text { share } \\\text { Common stock outstanding at January } 1,2014 : & 110,000 \text { shares } \\\text { Common stock outstanding at December } 31,2014 : & 150,000 \text { shares } \\\text { (No preferred stock issued) } &\end{array}$$
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How much was the dividend payout for one share of common stock?

• A) 1.67
• B) 3.33
• C) 0.30
• D) 3.95

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Definitions:

Liquidating a Partnership

The process of terminating a partnership by selling off assets, paying off creditors, and distributing the remaining assets to partners.

Divide Profits

The process of allocating earnings among shareholders, partners, or other stakeholders according to their ownership interests or agreement terms.

Remaining Cash

The amount of cash a business has after all expenses and distributions have been made.

Revaluation

The process of adjusting the book value of an asset to reflect its current market value.