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7. If a firm has a 60% dividend payout ratio and $10,000 Net income in a given year, and has 1,000 outstanding common stock, then

7. If a firm has a 60% dividend payout ratio and $10,000 Net income in a given year, and has 1,000 outstanding common stock, then it will distribute ______ in dividend to each share in that year. *

a. $6,000

b. $6

c. $2,050

d. $4,000

e. None of the above

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