Dentaltech Inc

question 55

Multiple Choice

Dentaltech Inc.projects the following data for the coming year.If the firm follows the residual dividend model and also maintains its target capital structure,what will its dividend payout ratio be? ​

• A) 44.9%
• B) 52.9%
• C) 52.5%
• D) 39.5%
• E) 38.1%

---

Definitions:

Consumer Surplus

The variance between the aggregate sum consumers can and will pay for a good or service and the sum they truly pay.

Toothpaste Market

The overall market for toothpaste, encompassing the production, distribution, and sales of toothpaste products to consumers.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved due to market distortions.

Subsidy Payments

Financial support given by a government or organization to lower the price of a product or service or to support a business or economic sector.