contestada

A firm has sales of $811,000 for the year. The profit margin is 5.1 percent and the retention ratio is 56 percent. What is the common-size percentage for the dividends paid?A. 1.99

B. 2.86

C. 2.24

Respuesta :

TomShelby

Answer:

C. 2.24

Explanation:

The profit margin is the net income expressed as a percentage of sales therefore, we already got that metric in common-size

Now the net income is either distributed in dividends or accumulated in retained earnings account. In this case 5&% is retained while the other 44% distributed

We calculate the 44% of the 5.1% which is the net income to knwo the common size of the dividends related to sales:

5.1 x (1-0.56) = 5.1 x 0.44 = 2,244‬

Otras preguntas