Layne Corporation had the following information in its financial statements for the years ended 2014 and...

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Layne Corporation had the following information in its financial statements for the years ended 2014 and...

Layne Corporation had the following information in its financial statements for the years ended 2014 and 2015:

Cash dividends for the year 2015 $ 12,000

Net income for the year ended 2015 115,000

Market price of stock, 12/31/14 10

Market price of stock, 12/31/15 12

Common stockholders’ equity, 12/31/14 1,600,000

Common stockholders’ equity, 12/31/15 1,980,000

Outstanding shares, 12/31/15 180,000

Preferred dividends for the year ended 2015 15,000

What is the payout ratio for Layne Corporation for the year ended 2015?

a. 30.1%

b. 18.1%

c. 14.7%

d. 12.0%

business accounting

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Answer 1

Answer #1

ANSWER:

OPTION D: 12%

EXPLANATION:

Payout ratio = total equity dividend/net income available for common stockholders

= $12000/($115000 - $15000)

= 12%

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Answer 2

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Layne Corporation had the following information in its financial statements for the years ended 2014 and...

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