question archive Al hilal firm has sales of $20,000, profit margin of 5% and dividend payout ratio of 60%
Al hilal firm has sales of $20,000, profit margin of 5% and dividend payout ratio of 60%
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Al hilal firm has sales of $20,000, profit margin of 5% and dividend payout ratio of 60%. What is the common-size percentage for the dividends paid? 1. O 0.15 2. 0 0.02 3. 00.01 4. O 0.03
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Profit = Profit margin*Sales= 5%*20000 = 1000
Dividend= Payout ratio*Profit
=1000*60%
=600
Common size percentage= Dividends/ Sales
=600/20000
=0.03
Option 4 is correct, hence other options are incorrect.
