Rapid Sign Corporation
Selected Data from the Financial Statements Are

question 182

Multiple Choice

Rapid Sign Corporation
Selected data from the financial statements are presented in the figure:
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Net income } & \$ 110,000 & \$ 123,000 \\\text { Cash dividends paid on common shares } & 42,000 & 38,000 \\\text { Average number of common shares outstanding } & 140,000 & 145,000 \\\text { Repurchased } & 70,000 & 0 \\\text { Market price per share of common shares at vear end } & 16.00 & 13.00\end{array}$
-Refer to the figure Rapid Sign Corporation.What is the share repurchase payout ratio for Year 2?

• A) 0%
• B) 35.1%
• C) 51.7%
• D) 63.8%

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Definitions:

Short-Run Aggregate Supply Curve

A graphical representation showing the relationship between the total supply of goods and services produced by an economy and the price level for those goods and services in the short term.

Long-Run Aggregate Supply Curve

A graphical representation showing an economy’s potential output level when all factors of production are fully utilized.

Labor Force

The total number of people available to work, including both the employed and those seeking employment but currently unemployed.

Net Investment

The total amount spent on new capital assets minus the depreciation on existing capital assets.