Which of the Following Is Correct for a Firm with $400,000

question 45

Multiple Choice

Which of the following is correct for a firm with $400,000 in net earnings,20,000 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 investment.
• D) The dividend per share will equal $6.00.

Interpret financial data to make pricing decisions.

Estimate the impact of different pricing strategies on profit and cost management.

Understand the importance of market-based pricing in setting selling prices.

Compute and analyze contribution margin in decision-making scenarios.

---

Definitions:

Material Tool

Physical objects designed and used by humans to perform a task or solve a problem.

Symbolic Tool

An object or sign used to represent ideas, concepts, or other objects, facilitating communication and cognitive processes.

Material Tool

An object or physical item used to achieve a goal or complete a task, often made or modified by human beings.

Geometry

A branch of mathematics that deals with shapes, sizes, and other properties of figures and spaces.