Lucas Inc Earned $15 Million Last Year and Retained $6 Million

question 88

Multiple Choice

Lucas Inc. earned $15 million last year and retained $6 million. Lucas has 5 million shares outstanding, and the current price of Lucas shares is $30 per share. What is the payout ratio?

• A)2.67%
• B)4%
• C)40%
• D)60%

---

Definitions:

Nature-Nurture Issue

A debate concerning the relative importance of an individual's innate qualities ("nature") versus personal experiences ("nurture") in determining or causing differences in physical and behavioral traits.

Psychological Traits

Enduring characteristics or behaviors that define an individual's personality.

Physical Traits

Observable characteristics of an organism, such as hair color, body shape, and other features determined by genes.

Human Body

The physical structure of a person, including all organs, tissues, and cells.