Payout Ratio and Book Value per Share Divac Company has developed a statement of stockholders' equity for the year 2017 as follows: Pald-In Pald-In Preferred Capital Common Capital Retained Stock Preferred Stock Common Earnings Balance, Jan. 1 $100,000 $50,000 $400,000 $40,000 $200,000 Stock issued 100,000 10,000 Net income 66,000 Cash dividend -43,000 Stock dividend 10,000 5,000 -15,000 Balance, Dec 31 $110,000 $55,000 $500,000 550,000 $208,000 Divac's preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per share. There are no dividends in arrears on the stock. The common stock has a par value of $10 per share. Assume that the common stockholders have a right to the total net income of $56,000 Required: 1. Determine the dividend payout ratio for the common stock Round the payout ratio to four decimal places, but enter as a percentage to two decimal places. For example, 34678 rounds to 3468 and would be entered as 3468, indicating 34.68% 2. Determine the book value per share of Diva's common stock. Round the book value per Share to two decimals. per share Previous Next Alaved Save and Sub Assignment for Grading C o O 40 $ 96 & * ) 4 5 6 7 8 9 0 t u O f g h j k Payout Ratio and Book Value per Share Divac Company has developed a statement of stockholders' equity for the year 2017 as follows: Pald-In Pald-In Preferred Capital Common Capital Retained Stock Preferred Stock Common Earnings Balance, Jan. 1 $100,000 $50,000 $400,000 $40,000 $200,000 Stock issued 100,000 10,000 Net Income 66,000 Cash dividend -43,000 Stock dividend 10,000 5,000 -15,000 Balance, Dec. 31 $110,000 $55,000 $500,000 $50,000 $200,000 All work saved. Email Instructor Save and Exit Submit Assignment for Grading