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:

Adult Learning Cycle

A concept in educational theory that outlines the continuous process of adults experiencing, reflecting, thinking, and acting as they learn.

Unexpected Assignment

A task or project given with little to no prior notice, requiring immediate attention and action.

Stress

The psychological and physical response to perceived challenges or threats in one's environment.

Reflect

To think about something in a purposeful way with the intention of creating new meaning.