Suppose a Firm Has a Retention Ratio of 80 Percent

question 97

Multiple Choice

Suppose a firm has a retention ratio of 80 percent, net income of $10 million, and 2 million shares outstanding. What would be the dividend per share paid out on the firm's stock?

• A) $1.00
• B) $2.00
• C) $4.00
• D) $5.00

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Definitions:

Coworkers

Individuals who work together in the same organization or workplace.

Spouse

A partner in a marriage or civil union, legally bound to another individual, sharing household, familial, and social responsibilities.

Live Alone

The state or decision of residing in a household by oneself, without cohabitation with family or roommates.

Men

Mature male individuals of the human species.