Suppose a Firm Pays Total Dividends of $750,000 Out of Net

question 108

Multiple Choice

Suppose a firm pays total dividends of $750,000 out of net income of $2 million. What would the firm's retention ratio be?

• A) 37.50%
• B) 47.50%
• C) 25.50%
• D) 62.50%

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