Compute the dividend payout ratio


Sabb Corporation's net income last year was $6,200,000. The dividend on common stock was $13.60 per share and the dividend on preferred stock was $2.80 per share. The market price of common stock at the end of the year was $42.20 per share. Throughout the year, 300,000 shares of common stock and 200,000 shares of preferred stock were outstanding.

Required: Compute the dividend payout ratio. (Round your answer to 2 decimal places.)

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Accounting Basics: Compute the dividend payout ratio
Reference No:- TGS0706929

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