Company dividend payout ratio


Problem:

QRW INC has a retained earnings balance of $2,000,000. The company reported net income of $600000, sales of $4,000,000 and has 200000 shares of common stock outstanding. The company annouced a dividend of $2.00 per share. Therefore the company's dividend payout ratio is:

A. 10%

B. 20%

C. 66.7

D. 50%

Note: Please provide full description.

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Accounting Basics: Company dividend payout ratio
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