Which Statement Is Correct for a Firm That Forecasts Net

question 84

Multiple Choice

Which statement is correct for a firm that forecasts net income of $200,000 and a reduction in retained earnings of $50,000?

• A)Dividends will total $150,000
• B)The plowback ratio is 25%
• C)The payout ratio exceeds 1.0
• D)This combination of account changes cannot occur

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Definitions:

Extramarital Sex

Sexual activities that occur outside of marriage.

Men and Women

Refers to the adult human male and female demographic categories, respectively.

Percentage

A mathematical term representing a number or ratio expressed as a fraction of 100.

Sexual Activity

Any activity that involves sexual intercourse or other sexual practices between individuals.