Suppose a Firm Has a Retention Ratio of 10 Percent

question 42

Multiple Choice

Suppose a firm has a retention ratio of 10 percent, net income of $40 million, and 4 million shares outstanding. What would be the dividend per share paid out on the firm's stock?

• A) $0.10
• B) $1.00
• C) $9.00
• D) $10.00

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Definitions:

Class Size

The number of students enrolled in a given class or course, often influencing the effectiveness of teaching and learning.

Distribution Tails

The regions at either end of a probability distribution, often of interest for understanding the likelihood of extreme outcomes.

Extreme Values

Observations in data that are significantly higher or lower than the majority, often indicating outliers or anomalies in datasets.

Stem

In 'stem-and-leaf' displays, the 'stem' represents the leading digits of the numbers, providing a quick overview of data distribution while retaining the original data values.