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.

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Definitions:

William James

Often referred to as the father of American psychology, he was a philosopher and psychologist who was the first educator to offer a psychology course in the United States, making significant contributions to psychology, especially in the areas of education, religion, and mysticism.

Conscious Experience

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.

Wilhelm Wundt

Known as the father of experimental psychology, he established the first psychology laboratory in Leipzig, Germany, in 1879.

Edward Titchener

A psychologist known for founding structuralism and his method of introspection to identify the basic elements of consciousness.