Suppose a Firm Pays Total Dividends of $25,000 Out of Net

question 31

Multiple Choice

Suppose a firm pays total dividends of $25,000 out of net income of $100,000. What would the firm's payout ratio be?

• A) 0.25
• B) 2.50
• C) 4.00
• D) 25.00

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Definitions:

Incubator

Is an organization or facility designed to support the growth and development of startups and early-stage companies by providing resources such as workspace, mentorship, and access to investors.

Networking

The act of interacting with other individuals or organizations to exchange information and develop professional or social contacts.

Professional Assistance

Expert support or guidance provided to help individuals or businesses achieve specific goals.

Inflexibility

The lack of adaptability or inability to change in response to new information or changing circumstances.