A Firm Has a Policy of Paying Out 50% of Its

question 19

Multiple Choice

A firm has a policy of paying out 50% of its net income over $100,000 in dividends. If the firm's netincome is $400,000, the total dividend payout would be

• A) $400,000
• B) $100,000
• C) $150,000
• D) $200,000

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Definitions:

Introduces

To present or bring to notice something for the first time, or to make something known that was previously unknown.

Consequently

A term indicating that as a result of something previously stated, a logical conclusion or outcome follows.

Explanation

A statement or account that makes something clear or understandable by describing the relevant structure, mechanisms, reasons, or context.

Neutered

The process of removing the reproductive organs of an animal, often done to prevent breeding and manage population control.