What Is the Maximum Dividend Payout Ratio Consistent with Not

question 12

Multiple Choice

What is the maximum dividend payout ratio consistent with not requiring external funds for a firm with an ROE of 15%, a debt-equity ratio of 50%, and an annual sales growth objective of 9%?

• A)Approximately 1%
• B)Approximately 10%
• C)Approximately 12%
• D)Approximately 20% If debt-equity ratio = .5, then 1/3 of the firm is debt financed and 2/3 of the firm is equity financed.
• And 2/3 = 66.67%
• Internal growth rate =

Understand the concept of control accounts and their relevance to subsidiary ledgers.

Differentiate between transactions that should be recorded in general and special journals.

Identify the purposes and types of accounting journals.

Understand the procedures for recording transactions in special and general journals.

---

Definitions:

Variable-interval Schedule

A type of reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable amount of time has passed.

Shaping

A method in behavioral psychology where successive approximations of a desired behavior are reinforced to teach a new behavior or skill.

Praises

Expressions of approval or admiration, often used to encourage or positively reinforce certain behaviors or achievements.

Generalization

In conditioning, the tendency for a CR to be evoked by stimuli that are similar to the stimulus to which the response was conditioned.