Suppose a Firm Pays Total Dividends of $165,000 Out of Net

question 73

Multiple Choice

Suppose a firm pays total dividends of $165,000 out of net income of $1 million. What would the firm's retention ratio be?

• A) 1.65 percent
• B) 8.35 percent
• C) 16.50 percent
• D) 83.50 percent

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Definitions:

Cross-price Elasticity

Measures the responsiveness of the demand for one good to a change in the price of another good.

Grape Harvest

The process of collecting grapes from the vineyards, usually seasonal and significant for wine production.

Peanut Butter

A spread made from ground, dry-roasted peanuts, often mixed with ingredients like salt, sweeteners, or emulsifiers.

Income Elasticity

A metric assessing the responsiveness of a product's demand to fluctuations in consumer incomes.