Suppose a Firm Has a Retention Ratio of 33 Percent

question 92

Multiple Choice

Suppose a firm has a retention ratio of 33 percent and net income of $6.25 million. How much does it pay out in dividends?

• A) $4,187,500
• B) $2,062,500
• C) $1,987,500
• D) $4,375,500

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Definitions:

Infant Demands

The needs and desires expressed by a baby, such as for food, comfort, and attention, which require response from caregivers.

Initiation Rites

Are rituals that signify transition from one group to another and ensure loyalty to the new group.

Total Institutions

Places where people are separated from the rest of society and have their lives controlled and regulated by the administrative staff, such as prisons, hospitals, or military barracks.

Resocialization

The process by which individuals learn new norms, values, attitudes, and behaviors, replacing those from their previous roles or environments.