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:

Internal Product

A product developed for and used exclusively within a company, not intended for the external market.

Additional Employee Training

The process of providing employees with further education or skills after their initial training to improve their performance or prepare them for additional responsibilities.

Internal Company Newsletters

Publications produced by an organization to communicate news, updates, and other relevant information to its employees.

Internal Process

The procedures and activities within an organization that contribute to the production of goods or delivery of services.