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If Firm A has earnings per share (EPS) of $2.00 and pays a dividend of $0.60 per share, then its A) Retention ratio is 0.7

If Firm A has earnings per share (EPS) of $2.00 and pays a dividend of $0.60 per share, then its

A) Retention ratio is 0.7

B) Payout ratio is 0.7

C) Retention ratio is 3.33

D) Payout ratio is 3.33

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