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Net Income

ABC Company had 100,000 shares of common stock and 20,000 shares of preferred stock at the end of the year just completed. Preferred stockholders received dividends totaling $140,000. Common stockholders received dividends totaling $210,000. If the dividend payout ratio for the year was 70%, then the net income for the year was:
A) $300,000.
B) $287,000.
C) $440,000.
D) $147,000.

Solution Summary

The solution explains the calculation of net income gievn the dividend payout ratio.

$2.19