Suppose a Firm Has a Retention Ratio of 80 Percent

question 97

Multiple Choice

Suppose a firm has a retention ratio of 80 percent, net income of $10 million, and 2 million shares outstanding. What would be the dividend per share paid out on the firm's stock?

• A) $1.00
• B) $2.00
• C) $4.00
• D) $5.00

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Definitions:

2.4 GHz

A common frequency used for 802.11 wireless networks.

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A Microsoft utility that encrypts an entire disk volume, including operating system files, user files, and paging files. The utility requires two disk partitions at a minimum.

NFC Chip

Near Field Communication (NFC) chip is a small electronic device embedded in objects like smartphones and credit cards to enable close-range wireless communication, facilitating transactions and data exchanges.