- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 16. Analysis of Dividends and Share Repurchases
- Subject 5. Payout policies
CFA Practice Question
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?
B. it is $1.00
C. it is $1.89
A. it is $1.25
B. it is $1.00
C. it is $1.89
Correct Answer: B
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 |