Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hans Sheffield, president of Whispering Winds Corp., believes that it is a good practice for a company to maintain a constant payout of dividends relative

image text in transcribed

Hans Sheffield, president of Whispering Winds 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 $660,000, and the corporation paid $132,000 in dividends. This year, due to some unusual circumstances, the corporation had income of $1,510,000. Hans expects next year's net income to be about $760,000. What was Whispering Winds 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 O 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

Students also viewed these Accounting questions

Question

Presentation Aids Practicing Your Speech?

Answered: 1 week ago