Biology Forums - Study Force

Sperle Corporation has provided the following data concerning its stockholders’ equity accounts:

	Year 2	Year 1
Stockholders' equity:
Common stock, $5 par value	$ 400,000	$ 400,000
Additional paid-in capital	60,000	60,000
Retained earnings	654,000	630,000
Total stockholders' equity	$ 1,114,000	$ 1,090,000

Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share.

The company’s dividend payout ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ 1.6%

▸ 21.1%

▸ 2.6%

▸ 14.7%

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