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Hans Bridgeport, president of Bridgeport Corp., believes that it is a good practice for a company to maintain a constant payout of dividends relative to
Hans Bridgeport, president of Bridgeport 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 $530,000, and the corporation paid $95,400 in dividends. This year, due to some unusual circumstances, the corporation had income of $1,380,000. Hans expects next year's net income to be about $630,000. What was Bridgeport 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 18 % Dividends paid this year $ 243,000
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