Big Baller Brand earned $5 million in net income last year and for the first time paid its common stockholders a dividend of $.25 per share. The firm has 4 million shareholders. What is the companys payout ratio?

		50%
		20%
		33%
		75%

Based on legal restrictions, a corporation may not pay a dividend under which of the following conditions:

		If the firms liabilities exceed its assets
		If the amount of the dividend exceeds the accumulated profits (retained earnings)
		If the dividend is being paid from capital invested in the firm
		All of the above.