Suppose a Firm Has a Retention Ratio of 80 Percent

question 97

Multiple Choice

Suppose a firm has a retention ratio of 80 percent, net income of $10 million, and 2 million shares outstanding. What would be the dividend per share paid out on the firm's stock?

• A) $1.00
• B) $2.00
• C) $4.00
• D) $5.00