Calculate the company payout ratio

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Reference no: EM132580580

Greenstone Company provided the following financial information:

Common stockholders' equity as of 1/1/2017            $3,600,000

Common stockholders' equity as of 12/31/2017         $4,400,000

Net sales for the year 2017                                 $2,000,000

Net income for the year 2017                               $250,000

Common stock dividends paid during 2017               $10,000

Question 1: Calculate the company's Payout Ratio.

Option 1: 4.00%

Option 2: 12.50%

Option 3: 6.25%

Option 4: 1.56%

Reference no: EM132580580

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