Wilco Company Reports the Following Dividend Payout Ratio for 2005 Was:
A) 27%
B) 12

question 9

Multiple Choice

Wilco Company reports the following: $$\begin{array} { | l | c | c | } \hline & 2005 & 2004 \\\hline \text { Retained Earnings } & \$ 2,000,000 & \$ 1,300,000 \\\hline \text { Common Stock } & \$ 500,000 & \$ 500,000 \\\hline \text { Paid-in Capital } & \$ 3,000,000 & \$ 3,000,000 \\\hline \text { Net Income for year } & \$ 900,000 & \$ 400,000 \\\hline\end{array}$$ Dividend payout ratio for 2005 was:

• A) 27%
• B) 12%
• C) 22.2%
• D) Not determinable

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Definitions:

Social Groups

Collections of individuals who interact and share similar characteristics and a sense of unity.

Bureaucratic Rationalization

The process of creating an efficient organization through the rational design and organization of human activity, often associated with increased specialization and standardization of tasks.

George Ritzer

An American sociologist known for his work on consumerism, globalization, and the "McDonaldization" of society.

McDonald's

A global fast-food restaurant chain founded in 1940, known for its burgers, fries, and wide range of other quick-service meals.