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:

Self-Esteem

A person's personal assessment of their own importance or merit.

Narcissists

Individuals with an inflated sense of their own importance, a deep need for excessive attention and admiration, coupled with a lack of empathy for others.

Aggressiveness

A quality of being ready or likely to confront or attack, often reflecting in behavior that can be forceful, hostile, or assertive.

Psychopathic

Relating to psychopathy, a personality disorder marked by ongoing antisocial actions, lacking empathy and remorse, along with prominent, uninhibited, and narcissistic characteristics.