Suppose a Firm Pays Total Dividends of $25,000 Out of Net

question 31

Multiple Choice

Suppose a firm pays total dividends of $25,000 out of net income of $100,000. What would the firm's payout ratio be?

• A) 0.25
• B) 2.50
• C) 4.00
• D) 25.00

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Definitions:

Authority

Authority refers to the power or right to give orders, make decisions, and enforce obedience, often within organizational or institutional settings.

Resource Allocation

The process of distributing available resources among various projects, tasks, or investments.

Relationship Conflict

Disagreements and personal incompatibilities among group members that stem from interpersonal issues, often leading to tension and reduced group cohesion.

Process Conflict

A type of conflict that arises from disagreements over the logistics, delegation, and methods of task achievement within a team or organization.