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Suppose a firm has a retention ratio of 75 percent, net income of $12 million, and 6 million shares outstanding. What would be the dividend
Suppose a firm has a retention ratio of 75 percent, net income of $12 million, and 6 million shares outstanding. What would be the dividend per share paid out on the firms stock? First: Available for Dividends = (1 Retention Ratio) X Net Income Then: Dividend/share = $ Available/number of shares
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