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Suppose a firm pays total dividends of $25,000 out of net income of $100,000. What would the firm's payout ratio be? Multiple Choice 2.50 25.00

Suppose a firm pays total dividends of $25,000 out of net income of $100,000. What would the firm's payout ratio be?

Multiple Choice

2.50
25.00
.25
4.00

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