Dahn Corporation Has Provided the Following Financial Data

question 211

Multiple Choice

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. The company's operating cycle for Year 2 is closest to:

• A)66.2 days
• B)16.5 days
• C)95.3 days
• D)45.6 days

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Definitions:

Dividend Payout Ratio

The portion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total net income.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often used for reinvestment in the business.

Planning Assumption

Planning assumption involves the underlying assumptions or estimations made during the planning phase of a project or strategy, which guide decision-making and expectations for the future.

Planning Period

The length of time for which an organization prepares its strategies and allocates its resources.