A Payout Ratio of 35% for a Company Indicates That

question 124

Multiple Choice

A payout ratio of 35% for a company indicates that:

• A) 35% of dividends are plowed back for growth.
• B) 65% of dividends are plowed back for growth.
• C) 65% of earnings are paid out as dividends.
• D) 35% of earnings are paid out as dividends.

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Definitions:

Categorical Proposition

A proclamation that either affirms or contradicts something concerning all elements of a particular class.

Hypothetical Proposition

A compound proposition that uses the connective “if . . . then.”

Disjunctive Proposition

A statement in logic that presents two or more alternatives, where the truth of at least one alternative makes the proposition true.

Contrapositive

A logical statement derived by negating and swapping the hypothesis and conclusion of the original conditional statement. If the original statement is "If P, then Q," the contrapositive is "If not Q, then not P."