Suppose a Firm Has a Retention Ratio of 15 Percent

question 105

Multiple Choice

Suppose a firm has a retention ratio of 15 percent, net income of $60 million, and 15 million shares outstanding. What would be the dividend per share paid out on the firm's stock?

• A) $0.25
• B) $0.60
• C) $3.40
• D) $4.00

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Definitions:

Atomic Number

The number of protons in the nucleus of an atom, which determines the chemical properties of an element and its place in the periodic table.

Atomic Mass

The mass of an atom, typically expressed in atomic mass units (amu), representing the total number of protons and neutrons in the nucleus.

Synthesis Reactions

Chemical reactions in which two or more substances combine to form a new compound.

Catabolic Reactions

Catabolic reactions are metabolic processes that break down molecules into smaller units, releasing energy.