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May I ask for a solution and explanation to the problem for a better understanding. Thank you! For Lettuce Company what is the dividend pay-out ratio for years 1 and 2, respectively? a. 0.80 ; 0.71 b. 0.71 ; 0.80 c. 0.90 ; 0.85 d. 0.85 ; 0.90

May I ask for a solution and explanation to the problem for a better understanding. Thank you! For Lettuce Company what is the dividend pay-out ratio for years 1 and 2, respectively? a. 0.80 ; 0.71 b. 0.71 ; 0.80 c. 0.90 ; 0.85 d. 0.85 ; 0.90

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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May I ask for a solution and explanation to the problem for a better understanding. Thank you!

For Lettuce Company what is the dividend pay-out ratio for years 1 and 2, respectively?
a. 0.80 ; 0.71
b. 0.71 ; 0.80
c. 0.90 ; 0.85
d. 0.85 ; 0.90
Selected data for LETTUCE Company follow: Year 2 Year 1 Preference share, par value P50, 10%.. Ordinary share, par value P20.. Share premium - ordinary share.. Retained earning. P100,000 P100,000 . 400,000 400,000 100,000 100,000 140,000 120,000 60,000 10,000 Net income . 80,000 Dividends on preference share Dividends on ordinary share Market price per share, Dec 31.. 10,000 50,000 40,000 28.00 21.00
Transcribed Image Text:Selected data for LETTUCE Company follow: Year 2 Year 1 Preference share, par value P50, 10%.. Ordinary share, par value P20.. Share premium - ordinary share.. Retained earning. P100,000 P100,000 . 400,000 400,000 100,000 100,000 140,000 120,000 60,000 10,000 Net income . 80,000 Dividends on preference share Dividends on ordinary share Market price per share, Dec 31.. 10,000 50,000 40,000 28.00 21.00
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