Which One of the Following Is Correct for a Firm

question 87

Multiple Choice

Which one of the following is correct for a firm with $400,000 in net earnings,50,000 shares,and a 30% payout ratio?

• A) Retained earnings will increase by $120,000.
• B) Each share will receive a $1.20 dividend.
• C) $120,000 will be spent on new investments.
• D) The dividend per share will be $2.40.

Evaluate and decide between investment options based on their simple interest yield.

Comprehend the effect of interest rate changes on the profitability of selling investments before maturity.

Calculate the maturity value of notes with given face value, interest rates, and durations.

Determine the proceeds from non-interest-bearing promissory notes when discounted before maturity.

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Definitions:

Prenatal Development

The process of growth and development within the womb from conception to birth.

Personal Fable

A cognitive distortion experienced during adolescence, where an individual believes they are unique and invincible.

Adolescent

The transitional stage of physical and psychological development that occurs between childhood and adulthood, typically between the ages of 13 and 19.

Temperament

An individual's inherent personality traits, particularly those related to their emotional and behavioral responses from early childhood.