Note: Answer questions (27) and (28) based on the following information: the Payout Ratio? Net income:

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Note: Answer questions (27) and (28) based on the following
information:
the Payout Ratio?
Net
income:
$ 600,000
Preferred
dividends:
$ 200,000
Cash dividends on common
stock:

$ 150,000
Average common stockholder’s
equity:
$ 1,000,000
27) Based on the following information, which is the correct
amount for the Payout Ratio?
a) 15%
b) 20%
c) 25%
d) 40%
e) 60%
28) Based on the following information, which is the correct
amount for Return on Common Stockholder’s Equity?
Net
income:
$ 600,000
Preferred
dividends:
$ 200,000
Cash dividends on common
stock:

$ 150,000
Average common stockholder’s
equity:
$ 1,000,000
a) 15%
b) 20%
c) 25%
d) 40%
e) 60%