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If firm A has earnings per share of $3.75 and pays a dividend of $1.50 per share, then its A. Payout ratio is 0.4 B.

If firm A has earnings per share of $3.75 and pays a dividend of $1.50 per share, then its

A. Payout ratio is 0.4

B. Retention ratio is 0.4

C. Payout ratio is 2.5

D. Retention ratio is 2.5

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