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Dividend Payout Ratio Net Income: $80,000 Dividends Paid: $20,000 Requirements: Calculate the Dividend Payout Ratio. Explain the significance of this ratio for investors. Discuss
Dividend Payout Ratio Net Income: $80,000
- Dividends Paid: $20,000
Requirements:
- Calculate the Dividend Payout Ratio.
- Explain the significance of this ratio for investors.
- Discuss the potential impact of increasing dividends on the company’s cash flow.
- Suggest alternative uses for the retained earnings.
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