Reference no: EM133012587

Questions -

Q1- The following information pertains to Crane Company. Assume that all balance sheet amounts represent average balance figures.

Total assets $350000

Stockholders' equity-common 175000

Total stockholders' equity 180000

Sales revenue 150000

Net income 20000

Number of shares of common stock 6000

Common dividends 15000

Preferred dividends 7000

What is the payout ratio for Crane?

A-60%

B-75%

C-10%

D-30%

Q2- Shamrock Inc. has 6500 shares of 6%, $50 par value, cumulative preferred stock and 30000 shares of $1 par value common stock outstanding at December 31, 2021, and December 31, 2022. The board of directors declared and paid a $12000 dividend in 2021. In 2022, $72000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2022?

A-$40500.

B-$19500.

C-$45000.

D-$52500.

Q3- Cheyenne Corporation had net income of $170000 and paid dividends of $45000 to common stockholders and $20,000 to preferred stockholders in 2021. Cheyenne Corporation's common stockholders' equity at the beginning and end of 2021 was $830000 and $1170000, respectively. Cheyenne Corporation's payout ratio for 2021 was

A-26.5%.

B-41.2%.

C-3.5%.

D-5.4%.