Problem regarding to common stockholders

Reference no: EM13124287

Bunting Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2007. The weighted average number of shares outstanding in 2007 was 50,000 shares. Bunting Corporation's common stock is selling for $50 per share on the New York Stock Exchange.

Bunting Corporation's payout ratio for 2007 is:

a. $5 per share.

b. 25%.

c. 20%.

d. 12.5%.

Reference no: EM13124287

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