Recher Corporation's Common Stock Has a Par Value of $3

question 265

Multiple Choice

Recher Corporation's common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the company's balance sheet for several years. The total stockholders' equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000. Net income for the year was $17,500. Dividends on common stock during the year totaled $4,500. The market price of common stock at the end of the year was $3.76 per share. The company's dividend payout ratio is closest to:

• A)1.3%
• B)1.7%
• C)17.1%
• D)26.3%

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Definitions:

Cervical Plexus

A network of nerves in the neck that supplies movement and sensation to the neck, upper shoulders, and part of the arms.

Patellar Reflex

A reflex action in which the patellar tendon is tapped, causing the quadriceps muscle to contract and kick the lower leg forward.

Rectus Femoris Muscle

A muscle of the anterior thigh that is part of the quadriceps group, involved in knee extension and hip flexion.

Proprioceptor

Sensory receptors found in muscles and tendons that provide information about body position and movement.