Question
Suppose a firm has a dividend payout ratio of 47 percent and net income of $7 million. What would be the annual addition to retained
Suppose a firm has a dividend payout ratio of 47 percent and net income of $7 million. What would be the annual addition to retained earnings?
a. $3,890,000.
b. $3,510,000.
c. $3,290,000.
d. $3,710,000.
Step by Step Solution
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Step: 1
Net income 7000000 Dividend payout ratio 47 Retention ratio 1 Dividen...
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Step: 3
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
