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if Ali Co. has common share ( $ 0.25 par value) $100,000. the market value per share is $ 2. the company generates net income

if Ali Co. has common share ( $ 0.25 par value) $100,000. the market value per share is $ 2. the company generates net income as $ 40,000 and dividends announced is $ 10,000. the dividends coverage ratio is

a.

8 times

b.

25%

c.

50%

d.

4 times

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