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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