Well-Bred Service Company earned $50,000,000 during 2012 and paid $20,000,000 in dividends to the holders of its

Question:

Well-Bred Service Company earned $50,000,000 during 2012 and paid $20,000,000 in dividends to the holders of its 40 million shares. If the current market price of Well-Bred’s stock is $31.25, calculate the following:
(a) The company’s payout ratio;
(b) The stated per share, assuming Well-Bred pays dividends annually;
(c) The stated per share, assuming Well-Bred pays dividends in four equal quarterly payments;
(d) The current yield on Well-Bred stock.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...