The following information pertains to Whispering Company

Accounting Dec 06, 2020

The following information pertains to Whispering Company. Assume that all balance sheet amounts represent average balance figures.Total assets$345000Stockholders’ equity-common225000Total stockholders’ equity273000Sales revenue118000Net income20900Number of shares of common stock8000Common dividends5000Preferred dividends8300What is Whispering’s payout ratio?37%.23.92%.17%.9%

Expert Solution

option 2 is correct Dividend payout =23.92% Explanation net income =20900 common Dividend =5000 Dividend payout =Common dividend/net income x 100 Dividend payout =5000/20900 × 100 Dividend payout =23.92%

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