If a Firm's EPS Are $8

question 1

Multiple Choice

If a firm's EPS are $8.33, and the firm is paying a dividend of $1.25 per share, what is the firm's dividend payout ratio?

• A) 33%
• B) 6%
• C) 15%
• D) 25%
• E) 66%

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Definitions:

ATC Curve

Represents the average total cost of producing a good or service, calculated by dividing total cost by the quantity produced, and typically displayed as a graph.

AVC Curve

The Average Variable Cost curve, which graphs the per unit variable costs of production against the quantity of output.

Average Variable Cost

The total variable costs (such as labor and materials) divided by the quantity of output produced.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity of output produced, indicating the cost of producing each unit of output.