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:

Thyroid Follicles

Microscopic, spherical sacs found in the thyroid gland, responsible for the production and storage of thyroid hormones.

Thyroxine-binding Protein

A plasma protein that transports thyroxine, a hormone responsible for regulating metabolism, throughout the bloodstream.

Parathyroid Hormone

A hormone secreted by the parathyroid glands that regulates calcium levels in the blood.

Serum Levels

The concentration of substances in the clear liquid portion of the blood after coagulation.