Lucas, Inc. earned $10 million last year and retained $6 million. Lucas has 5 million shares outstanding,

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Lucas, Inc. earned $10 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%

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Question Posted: Apr 30, 2013 08:32 AM

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Lucas, Inc. earned $10 million last year and retained $6 million. Lucas has 5 million shares outstanding,

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c 40 Computation of Payout ratio Earnings 10 millions Retained earnings at th...View the full answer

Foundations of Financial Management

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