Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
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?
B. 71.43%; $30,000.
C. 41.67%; $42,000.
A. 71.43%; $42,000.
B. 71.43%; $30,000.
C. 41.67%; $42,000.
User Contributed Comments 0
You need to log in first to add your comment.
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
compare stable dividend with constant dividend payout ratio, and calculate the dividend under each policy;
describe broad trends in corporate payout policies;
CFA® 2024 Level II Curriculum, Volume 3, Module 18.