Suppose a Firm Has a Retention Ratio of 25 Percent

question 80

Multiple Choice

Suppose a firm has a retention ratio of 25 percent, net income of $21 million, and 3 million shares outstanding. What would be the dividend per share paid out on the firm's stock?

• A) $0.14
• B) $1.75
• C) $5.25
• D) $7.00

---

Definitions:

Urine Test

A diagnostic analysis of urine by chemical, physical, or microscopic means to test for the presence of disease, drugs, or other substances.

Glucose Tolerance Test

A medical test measuring the body's ability to metabolize glucose and thus diagnose diabetes or prediabetes.

Blood Sugar Levels

The level of glucose found in the bloodstream, crucial for the diagnosis and treatment of diabetes.

Processes Sugar

The biological mechanism by which living organisms break down sugar (glucose) molecules to produce energy for cellular activities.