Calculate Payout Ratio Given the Following Information: EBIT $150,000; Interest

question 153

Multiple Choice

Calculate payout ratio given the following information: EBIT $150,000; interest expense $16,000; tax rate 30%; dividends paid $40,000.

• A) 35.55%
• B) 42.64%
• C) 63.57%
• D) 65.45%
• E) 68.23%

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Definitions:

Reinforcer

Any stimulus which strengthens or increases the probability of a specific response or behavior.

Primary Reinforcers

Innate reinforcing qualities, such as food and water, that satisfy biological needs and do not require learning to become effective.

Radical Behaviorists

Proponents of a branch of psychology that emphasizes the study of observable behavior and the environmental factors that influence it, often minimizing or ignoring internal states like thoughts and feelings.

Internal States

Psychological and physiological conditions that exist within an individual, such as emotions, moods, desires, and health status.