Suppose a Firm Pays Total Dividends of $200,000 Out of Net

question 10

Multiple Choice

Suppose a firm pays total dividends of $200,000 out of net income of $2.5 million. What would the firm's payout ratio be?

• A) 0.08
• B) 0.80
• C) 8.00
• D) 80.00

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Definitions:

OCEAN

An acronym for the Big Five personality traits model, which includes Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.

Five-Factor Model

A model that describes personality using five broad dimensions, each of which is composed of a constellation of personality traits.

Cardinal Traits

Fundamental personality characteristics that dominate and shape an individual's behavior and attitudes.

PEN Dimensions

A psychological theory focusing on three major traits of personality: Psychoticism, Extraversion, and Neuroticism.