Suppose a Firm Has a Retention Ratio of 33 Percent

question 92

Multiple Choice

Suppose a firm has a retention ratio of 33 percent and net income of $6.25 million. How much does it pay out in dividends?

• A) $4,187,500
• B) $2,062,500
• C) $1,987,500
• D) $4,375,500

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Definitions:

Controlling Pain

The process of managing or reducing the discomfort caused by acute or chronic pain through various techniques and treatments.

Effective Methods

Techniques or strategies that have been proven to lead to desired outcomes or goals efficiently.

Stimulant

A type of drug that increases activity in the nervous system, leading to increased alertness, attention, and energy.

Euphoria

A state of intense happiness and self-confidence, sometimes artificially induced by the use of drugs or when experiencing certain psychological states.