The information below relates to Ilall Company: Net income ...........................$ 280,000 Dividends .................................105,000 Total stockholders' equity ...3,900,000

Question:

The information below relates to Ilall Company:

Net income ...........................$ 280,000

Dividends .................................105,000

Total stockholders' equity ...3,900,000

Market value .......................4,800,000

Required:

A. Compute the dividend payout ratio

B. Compute the market to book value ratio

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...