Suppose a Firm Has a Retention Ratio of 25 Percent

question 78

Multiple Choice

Suppose a firm has a retention ratio of 25 percent, net income of $30 million, and 5 million shares outstanding. What would be the dividend per share paid out on the firm's stock?

• A) $1.50
• B) $4.50
• C) $6.00
• D) $16.67

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Definitions:

Hormones

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Sexual Harassment

Unwelcome verbal or physical conduct of a sexual nature.

Hostile Setting

A scenario or environment characterized by antagonism or conflict, potentially impacting an individual's well-being or mental state.

Glass Ceiling

An invisible barrier that prevents certain groups, notably women and minorities, from rising beyond a certain level in a hierarchy.