Suppose a Firm Has a Retention Ratio of 33 Percent

question 92

Multiple Choice

Suppose a firm has a retention ratio of 33 percent and net income of $6.25 million. How much does it pay out in dividends?

• A) $4,187,500
• B) $2,062,500
• C) $1,987,500
• D) $4,375,500

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Definitions:

Urine

A liquid waste product filtered from the blood by the kidneys, excreted through the urethra.

High-Frequency Sound Waves

Sound waves that have a frequency higher than the upper limit of human hearing, used in applications like ultrasound imaging.

Ultrasonography

A diagnostic imaging technique that uses high-frequency sound waves to create images of organs and structures inside the body.

Hypercalciuria

A condition characterized by an excessive amount of calcium in the urine.