ABC Corporation Reported Net Income of $26,000 Last Year

question 128

Short Answer

ABC Corporation reported net income of $26,000 last year.The company reported earnings per share of $2.80.ABC paid dividends of $1.75 on each share of outstanding stock.What was ABC's dividend payout ratio?

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and a stake in the company's profits and decision-making.

Limited Partnership

A business partnership where at least one partner has unlimited liability and one or more partners have limited liability, only responsible for the money they have invested.

Legal Entity

An organization or structure that is recognized by law as having rights and responsibilities, such as a corporation, partnership, or trust.

Stock

Shares of ownership in a company, representing a claim on the company's assets and earnings.