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Basic Question 1 of 13
Flower Buds has had a very successful year and earnings are $72,000. The company has 60,000 shares outstanding and will pay a dividend of $0.50 per share. What are the dividend payout ratio and the retained earnings for the year?
B. 71.43%; $30,000.
C. 41.67%; $42,000.
A. 71.43%; $42,000.
B. 71.43%; $30,000.
C. 41.67%; $42,000.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
compare stable dividend with constant dividend payout ratio, and calculate the dividend under each policy;
describe broad trends in corporate payout policies;
CFA® 2025 Level II Curriculum, Volume 3, Module 16.