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A company has a dividend payout ratio of 40% and a net income of $250,000. What amount is paid out as dividends? a) $100,000 b) $125,000 c) $150,000 d) $175,000

A company has a dividend payout ratio of 40% and a net income of $250,000. What amount is paid out as dividends? a) $100,000 b) $125,000 c) $150,000 d) $175,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
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A company has a dividend payout ratio of 40% and a net income of $250,000. What amount is paid out as dividends? a) $100,000 b) $125,000 c) $150,000 d) $175,000
Transcribed Image Text:A company has a dividend payout ratio of 40% and a net income of $250,000. What amount is paid out as dividends? a) $100,000 b) $125,000 c) $150,000 d) $175,000
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