Suppose a Firm Has a Retention Ratio of 35 Percent

question 103

Multiple Choice

Suppose a firm has a retention ratio of 35 percent, net income of $35 million, and 10 million shares outstanding. What would be the dividend per share paid out on the firm's stock?

• A) $1.225
• B) $2.275
• C) $3.50
• D) $7.00

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Definitions:

Workloads

The amount of work assigned to or expected from a worker in a specific period.

Problematic Substance Use

The use of alcohol, drugs, or other substances in a way that is harmful to the individual or others, often leading to addiction or other negative health outcomes.

Prescription

The written direction for the preparation and administration of a drug.

Hallucinogens

Substances that induce alterations in perception, mood, and cognitive processes, often resulting in visual or auditory hallucinations.