Wilco Company Reports the Following Dividend Payout Ratio for 2005 Was:
A) 27%
B) 12

Wilco Company reports the following: $$\begin{array} { | l | c | c | } \hline & 2005 & 2004 \\\hline \text { Retained Earnings } & \$ 2,000,000 & \$ 1,300,000 \\\hline \text { Common Stock } & \$ 500,000 & \$ 500,000 \\\hline \text { Paid-in Capital } & \$ 3,000,000 & \$ 3,000,000 \\\hline \text { Net Income for year } & \$ 900,000 & \$ 400,000 \\\hline\end{array}$$ Dividend payout ratio for 2005 was:

A) 27%
B) 12%
C) 22.2%
D) Not determinable

Correct Answer:

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