Partridge Company Provides the Following Information for the Year 2016

question 29

Multiple Choice

Partridge Company provides the following information for the year 2016: Earnings per share $0.24/share
Market price of ordinary shares: $12.00/share
Dividends paid: $0.80/share
(No preference shares issued)
How much was the dividend payout for one share?

• A)0.30
• B)3.95
• C)1.67
• D)3.33

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Definitions:

Federal Reserve Bank

The central banking system of the United States, responsible for determining national monetary policy and regulating financial institutions.

Depository Bank

A financial institution where securities and assets are stored and managed on behalf of their clients.

Holder in Due Course

A person or entity that has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be used against the original payee.

Stop-Payment Order

An order by a drawer that instructs the drawee bank not to pay an issued check.