ch15 question 4

Yardley Corp. just reported net income of $2,700,000 on sales of $25,600,000 and has 800,000 shares of stock outstanding The stock is currently trading at $45,00 per share. Last year, the company had a 40%6 dividend payout ratio and paid a dividend per share of \$1.20. Management has decided to pay the same dividend per share this year as last. What will its dividend payout ratio be? 34.00% (B) 34.88% 35.56% 38.25% 42.52%