Suppose a Firm Pays Total Dividends of $250,000 Out of Net

question 12

Multiple Choice

Suppose a firm pays total dividends of $250,000 out of net income of $2 million. What would the firm's payout ratio be?

• A) 0.125
• B) 0.25
• C) 1.25
• D) 8.00

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Definitions:

Distribution Center

A warehouse or storage facility where goods are stored for distribution to retailers or directly to consumers.

San Antonio

A major city in south-central Texas with a rich colonial heritage, known for the Alamo and River Walk.

Cell Value

The specific piece of data stored in a cell within a spreadsheet or table.

Constraint

A condition or limitation that must be adhered to in mathematical models, optimization problems, or in the realization of designs and projects.