A Firm Currently Has Sales of $550,000, a 6% Profit

question 109

Multiple Choice

A firm currently has sales of $550,000, a 6% profit margin and a 40% dividend payout ratio. What is the anticipated amount of dividends to be paid to shareholders if sales are expected to increase by 5%?

• A) $13,200
• B) $13,860
• C) $34,650
• D) $220,000
• E) $231,000

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Definitions:

Menopause

The time in a woman's life, typically between the ages of 45 and 55, when her menstrual periods cease and she can no longer conceive.

Internalize

The process of adopting the norms, attitudes, and behaviors of one's culture or society as one's own.

Withdrawn

A behavioral state characterized by a lack of social interaction and communication, often as a response to stress, anxiety, or depression.

Lonely

A complex and usually unpleasant emotional response to isolation or lack of companionship, which may include feelings of sadness, emptiness, or abandonment.