The Following Information Pertains to Benedict Company What Is the Payout Ratio for Benedict?
A) 40%
B)

Multiple Choice

The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures. $$\begin{array} { l r } \text { Total assets } & \$ 300,000 \\\text { Stockholders' equity-common } & 150,000 \\\text { Total stockholders' equity } & 200,000 \\\text { Sales revenue } & 100,000 \\\text { Net income } & 25,000 \\\text { Number of shares of common stock } & 6,000 \\\text { Common dividends } & 6,000 \\\text { Preferred dividends } & 4,000\end{array}$$ What is the payout ratio for Benedict?

A) 40%
B) 24%
C) 16%
D) 6%