Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 39 Hans Bramble, president of Bramble Corp., believes that it is a good practice for a company to maintain a constant payout of dividends

image text in transcribed
Question 39 Hans Bramble, president of Bramble 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 $740,000, and the corporation paid $148,000 in dividends. This year, due to some unusual circumstances, the corporation had income of $1,590,000. Hans expects next year's net income to be about $840,000. What was Bramble 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

Recommended Textbook for

More Books

Students also viewed these Accounting questions