Edelman,Inc The Company Has No Preferred Stock Outstanding

question 123

Multiple Choice

Edelman,Inc.provides the following information for 2017: $$\begin{array} { | l | l | } \hline \text { Net income } & \$ 190,000 \\\hline \text { Market price per share of common stock } & \$ 20.00 / \text { share } \\\hline \text { Dividends paid } & \$ 2,00 / \text { share } \\\hline \text { Common stock outstanding at Jan. } 1,2017 & 140,000 \text { shares } \\\hline \text { Common stock outstanding at Dec. } 31,2017 & 180,000 \text { shares } \\\hline\end{array}$$ The company has no preferred stock outstanding.Calculate the dividend payout ratio.(Round any intermediate calculations and your final answer to two decimal places. )

• A)147.06%
• B)0.63%
• C)20.00%
• D)168.07%

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Definitions:

Monthly Deposits

Regular payments or investments made into a financial account or savings plan once a month.

Lump Sum

A significant amount of money that is paid in one single payment instead of multiple payments.

Compounded Monthly

This refers to the process of calculating interest on the principal sum of a loan or deposit in which interest is added to the principal each month.

Quarterly

Relating to a three-month period or happening quarterly.