Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brief Exercise 11-9 Hans Pina, president of Pina Colada Corp., believes that it is a good practice for a company to maintain a constant payout

image text in transcribed

Brief Exercise 11-9 Hans Pina, president of Pina Colada 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 $610,000, and the corporation paid $115,900 in dividends. This year, due to some unusual circumstances, the corporation had income of $1,460,000. Hans expects next year's net income to be about $710,000 What was Pina Colada Corp.'s payout ratio last year? If it is to maintain the same payout ratio, what amount of dividends would it pay this year? (Round answers to 0 decimal places, e.g. 125.) Payout ratio-last year Dividends paid this year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Comparative International Accounting

Authors: Christopher Nobes, Robert B Parker

12th Edition

0273763792, 978-0273763796

More Books

Students also viewed these Accounting questions