Suppose a Firm Pays Total Dividends of $125,000 Out of Net

question 54

Multiple Choice

Suppose a firm pays total dividends of $125,000 out of net income of $500,000. What would the firm's retention ratio be?

• A) 22.00 percent
• B) 69.00 percent
• C) 25.00 percent
• D) 75.00 percent

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Definitions:

Flexible Work Schedules

Work arrangements that allow employees to vary their arrival and departure times, and/or choose their working hours, to accommodate personal needs and improve work-life balance.

Employee Motivation

The combination of internal and external factors that stimulate workers to take actions that lead to achieving work-related goals.

Managerial Tasks

The responsibilities and activities undertaken by managers, including planning, organizing, leading, and controlling, to achieve organizational objectives.

Productive Organizations

Organizations that efficiently and effectively use resources to meet their goals and generate outputs that are valued in the market.