The dividend payout ratio of a company is 40%, and its net income is Rs. 200,000. If the company has 50,000 shares outstanding, what is the dividend per share?Rs. 2.00Rs. 1.20Rs. 2.40Rs. 1.60
Question
The dividend payout ratio of a company is 40%, and its net income is Rs. 200,000. If the company has 50,000 shares outstanding, what is the dividend per share?Rs. 2.00Rs. 1.20Rs. 2.40Rs. 1.60
Solution
Step 1: Calculate the total dividend payout. The dividend payout ratio is 40% of the net income. So, the total dividend payout is 40% of Rs. 200,000 = Rs. 80,000.
Step 2: Calculate the dividend per share. The dividend per share is the total dividend payout divided by the number of shares outstanding. So, the dividend per share is Rs. 80,000 / 50,000 = Rs. 1.60.
So, the dividend per share is Rs. 1.60.
Similar Questions
A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 12%, his annual income is:Rs. 207.40Rs. 534.60Rs. 648Rs. 655.6
A person invest an amount of Rs, 65,000 in a company which pays a dividend of Rs. 4per share at Rs. 13 per share for a year.(i) Find the dividend income he received at the end of an year.After receiving the dividend income for a year, he sold all his shares at Rs. 20 each and he investthe money he received by selling all the shares to buy shares from another company which paysdividend of Rs. 6 per share to Rs. 50 per share.(ii) Find the difference between the dividend income he receives from bothcompanies.04. An incomplete pie-chart in the figure shows how a certainnumber of students from a school taken their breakfast on acertain day.(i) The number of students who ate rice is 600,find the number of students ate hoppers.(ii) The number of students those who ate bun is 120. Find the magnitude of central anglethat represent the students who ate bun.(iii) Find the total number of students in the school.(iv) Find the ratio between the number of students who ate bread and hoppers.
PEFERED SHARES: 1980 SHARESAUTHORIZZED SHARES: 12550 SHARESUNISSUED SHARES: 2500 SHARESTOTAL DIVDEND FOR THE YEAR: Php 6,500,250TOTAL DIVIEND FOR PREFFERED SHARES IS 25% OT THE TOTAL DIVIDENDS FOR THE YEARHOW MUCH IS THE TOTAL DIVIDEND FOR THE 1980 SHARES?
The company plans to dissolve in two years. At the present time, dividends at each date are set equal to the cash flow of $18,000. There are 100 shares outstanding, so the dividend per share is $180. Assume an 8% required rate of return. What is the present value of a share of stock?
TAT plc has ordinary shares with a par value of $0·50 in issue. The company generatedearnings per share of 45c for the financial year that has just ended. The dividend coverratio is 2·5 times and the gross dividend yield is 2% (Ignore taxation).What is the price/earnings ratio of the company?A. 2·8 timesB. 5·0 timesC. 20·0 timesD. 40·0 times
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.