1. Lucas, Inc. earned $16 million last year and retained $5 million. Lucas has 6 million shares outstanding, and the current price of Lucas shares is $40 per share. What is the payout ratio? (Round your answer to the nearest whole percent.)
74%
64%
69%
72%
2. CBA Inc has 260,000 shares outstanding with a $8.0 par value. The shares were issued for $18.0. The stock is currently selling for $30.0. CBA has $8,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 9.00%. What will be the capital in excess of par account after the stock dividend?
$3,114,800
$11,114,800
$2,600,000
$5,732,800