A firm has sales of $529,000 for the year. The profit margin is 3.4 per cent, and the retention ratio is 60 per cent. What is the common-size percentage for the dividends paid? A. 0.99 per cent B. 1.18 per cent C. 1.21 per cent D. 1.36 per cent E. 1.42 per cent
A firm has sales of $529,000 for the year. The profit margin is 3.4 per cent, and the retention ratio is 60 per cent. What is the common-size percentage for the dividends paid? A. 0.99 per cent B. 1.18 per cent C. 1.21 per cent D. 1.36 per cent E. 1.42 per cent
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
Related questions
Question
Provide answer general accounting question

Transcribed Image Text:A firm has sales of $529,000 for the year. The
profit margin is 3.4 per cent, and the retention
ratio is 60 per cent. What is the common-size
percentage for the dividends paid?
A. 0.99 per cent
B. 1.18 per cent
C. 1.21 per cent
D. 1.36 per cent
E. 1.42 per cent
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT

Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT