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BVI Corporation had net income of $1,600,000 and paid dividends to common stockholders of $320,000 in 2017. The weighted average number of shares outstanding in 2017 was 500,000 shares. BVI Corporation's common stock is selling for $50 per share on the NASDAQ. BVI Corporation's payout ratio for 2017 is _____.

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Answer:

25%

Step-by-step explanation:

We are given the following values from the question as follows;

net income = $1,600,000

Paid divided = $320,000

Average shares = 500,000 shares

Common stock = $50

To calculate the corporation payout ratio for 2017 we use the following method.

(=$400,000/$1,600,000)× 100%

=0.25×100%

=25%

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