Two Otherwise Equal Companies Have Significantly Different Dividend Payout Ratios

question 60

Multiple Choice

Two otherwise equal companies have significantly different dividend payout ratios. Which of the following statements is most likely to be correct? The company with the higher dividend payout ratio:

• A)will have a higher inventory turnover ratio.
• B)will have a lower inventory turnover ratio.
• C)will have a higher earnings retention ratio.
• D)will have a lower earnings retention ratio.

---

Definitions:

Poverty

The state of being extremely poor, where individuals or communities lack the financial resources for basic needs such as food, shelter, and healthcare.

Official Definition

An explanation or description that is approved and sanctioned by a recognized authority.

Poverty

Poverty is a condition where individuals or communities lack the financial resources to meet basic life necessities such as food, shelter, and healthcare.

Progressive Taxes

A tax system in which the tax rate increases as the taxable amount increases, placing a higher financial burden on wealthier individuals or entities.