Question - Hans Bramble, president of Bramble Corp., believes that it is a good practice for a company to maintain a constant payout of dividends relative to its earnings. Last year, net income was $520,000, and the corporation paid $104,000 in dividends. This year, due to some unusual circumstances, the corporation had income of $1,370,000. Hans expects next year's net income to be about $620,000.
What was Bramble Corp.'s payout ratio last year? If it is to maintain the same payout ratio, what amount of dividends would it pay this year?