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    Distribution of Retained Earnings

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    Last year, Axel Tires retained $180,000 of the $450,000 net income it generated. This year, Axel generated net income equal to $510,000. If Axel follows the constant dividend payout ratio dividend policy, how much should be paid in dividends this year?

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    https://brainmass.com/business/dividends-stock-repurchase-and-policy/distribution-retained-earnings-496820

    Solution Summary

    Last year, Axel Tires retained $180,000 of the $450,000 net income it generated. This year, Axel generated net income equal to $510,000. If Axel follows the constant dividend payout ratio dividend policy, how much should be paid in dividends this year?

    $2.19

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