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Basic Question 1 of 13

Flower Buds has had a very successful year and earnings are $72,000. The company has 60,000 shares outstanding and will pay a dividend of $0.50 per share. What are the dividend payout ratio and the retained earnings for the year?

A. 71.43%; $42,000.
B. 71.43%; $30,000.
C. 41.67%; $42,000.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

compare share repurchase methods;

calculate and compare the effect of a share repurchase on earnings per share when 1) the repurchase is financed with the company's surplus cash and 2) the company uses debt to finance the repurchase;

calculate the effect of a share repurchase on book value per share;

CFA® 2025 Level II Curriculum, Volume 3, Module 16.