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Basic Question 2 of 13

DJO Inc. has 31,000 shares of stock outstanding with a market price of $15 per share. If net income for the year is $155,000 and the retention ratio is 80%, what is the dividend per share on DJO Inc.'s stock?

A. it is $1.25
B. it is $1.00
C. it is $1.89
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User Contributed Comments 3

User Comment
katybo 155.000*0.2/31.000=1
ljamieson I wish I could do every question in my head.
Bootstraper Mi2
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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

compare stable dividend with constant dividend payout ratio, and calculate the dividend under each policy;

describe broad trends in corporate payout policies;

CFA® 2025 Level II Curriculum, Volume 3, Module 16.