A Firm Maintains a Constant Dividend Payout Ratio of

question 21

Multiple Choice

A firm maintains a constant dividend payout ratio of .40. What must the plowback ratio be?

• A) 1 + .40
• B) 1 - .40
• C) 1 * .40
• D) 1/.40
• E) .40

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Definitions:

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, particularly those with children.

Homeless People

Individuals who lack stable, permanent, and acceptable housing, often resulting in living in shelters, on the streets, or in places not meant for human habitation.

Cash Assistance

Financial aid given to individuals or families to help them meet basic needs, typically provided by government agencies.

Official Poverty Line

A government-determined income level below which an individual or family is considered to be living in poverty, affecting eligibility for certain public assistance programs.