Which of the Following Is Correct for a Firm with $400,000

question 20

Multiple Choice

Which of the following is correct for a firm with $400,000 in net earnings, 20,000 shares, and a 30% payout ratio?

• A)retained earnings will increase by $120,000
• B)each share will receive a $1.20 dividend
• C)$120,000 will be spent on new investment
• D)the dividend per share will equal $6.00

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Definitions:

Socioeconomic Status

An individual or group's position within a hierarchical social structure, determined by income, education, occupation, and other factors.

Catch Up Developmentally

The process in which children who have experienced delays in certain areas of development make significant progress to reach the expected level of development.

Gestational Age

The period of time measured from the first day of a woman's last menstrual period to the current date, usually used to assess the developmental progress of a fetus during pregnancy.

Low Birth Weight

A term describing infants who are born weighing less than 2,500 grams (5 pounds, 8 ounces), which can be associated with various health and developmental risks.