Suppose a Firm Pays Total Dividends of $165,000 Out of Net

question 73

Multiple Choice

Suppose a firm pays total dividends of $165,000 out of net income of $1 million. What would the firm's retention ratio be?

• A) 1.65 percent
• B) 8.35 percent
• C) 16.50 percent
• D) 83.50 percent

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Definitions:

Fellow Workers

Colleagues or co-workers within an organization who collaborate or work together in a professional environment.

Cognitive Dissonance Reduction

The process of alleviating discomfort caused by holding two contradictory beliefs, through changing attitudes, beliefs, or behaviors.

Perceived Control

An individual’s belief in their ability to influence events and outcomes in their lives.

Rewards Involved

Incentives or benefits provided to individuals to motivate performance or behavior.