Pearlman,Inc The Company Has No Preferred Stock Outstanding

Pearlman,Inc.provides the following information for 2019: $$\begin{array} { | l | r | } \hline \text { Net income } & \$ 285,000 \\\hline \text { Market price per share of common stock } & \$ 30.00 / \text { share } \\\hline \text { Dividends paid } & \$ 1,00 / \text { share } \\\hline \text { Common stock outstanding at Jan. } 1,2019 & 120,000 \text { shares } \\\hline \text { Common stock outstanding at Dec. } 31,2019 & 130,000 \text { shares } \\\hline\end{array}$$ The company has no preferred stock outstanding.Calculate the dividend payout ratio.(Round any intermediate calculations and your final answer to two decimal places.)

A) 42.02%
B) 23.36%
C) 30.00%
D) 43.86%

Correct Answer:

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