In the Percent-Of-Sales Method

question 76

Multiple Choice

In the percent-of-sales method

• A) as the dividend payout ratio goes up, the required new funds also rise.
• B) as the dividend payout ratio rises, required new funds decline.
• C) the dividend payout ratio does not affect new funds.
• D) none of the other answers are correct

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Definitions:

Income

The money received by a person or organization, typically in exchange for goods, services, or investments.

Total Utility

The complete satisfaction or pleasure a consumer derives from consuming a certain quantity of a good or service.

Marginal Utility

The extra pleasure a customer receives from using an additional unit of a product or service.

Donuts

A type of fried dough confection or dessert food, commonly shaped in a ring or filled, known for its sweet taste and various toppings.