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:

Dehydration Reaction

Chemical reaction in which a water molecule is released during the formation of a covalent bond.

Hydrogen Bonding

A weak interaction between a hydrogen atom bonded to a highly electronegative atom (like oxygen or nitrogen) and another electronegative atom.

Covalent Bonding

A type of chemical bonding characterized by the sharing of pairs of electrons between atoms, contributing to the molecule's stability.

Room Temperature

The ambient temperature of a room, typically considered to be about 20 to 22 degrees Celsius (68 to 72 degrees Fahrenheit).