Suppose a Firm Pays Total Dividends of $5,000 Out of Net

question 39

Multiple Choice

Suppose a firm pays total dividends of $5,000 out of net income of $250,000. What would the firm's retention ratio be?

• A) 0.98 percent
• B) 1.02 percent
• C) 2.00 percent
• D) 98.00 percent

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Definitions:

Indian Caste System

A hierarchical and traditional division of society into hereditary classes that dictate the occupation, social status, and marital alliances of its members.

Estates

Social or economic classes, particularly those seen in pre-modern societies, or refers to a large area of land owned by an individual or family.

Michael Blakey

An American anthropologist, bioarchaeologist, and professor known for his work in the field of human skeletal biology and the study of historical impacts on African American populations.

Institution of Slavery

A social and economic system in which individuals are owned by others, deprived of personal freedom and forced to work.