The following numbers are for three different companies: Required: 1. For each company, compute the dividend payout

Question:

The following numbers are for three different companies:

Ault Mt. Airy Red River $ 500 250 $ 1,000 4,100 Cash Retained earnings. Cash dividends Paid-in capital Total liabilities

Required:
1. For each company, compute the dividend payout ratio.
2. Interpretive Question: Which of the three companies is most likely to be a high-growth Internet company? Which is most likely to be an old, stable company? Explain.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 27, 2011 09:54 AM

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The following numbers are for three different companies: Required: 1. For each company, compute the dividend payout

Question:

Ault Mt. Airy Red River $ 500 250 $ 1,000 4,100 Cash Retained earnings. Cash dividends Paid-in capital Total liabilities Sales Net income. $ 750 1,000 150 1,500 800 8,000 600 2,500 10 4,000 900 700 11,000 10,000 700 900

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Accounting concepts and applications

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