Provide answer general accounting question A firm has sales of $529,000 for the year. Theprofit margin is 3.4 per cent, and the retentionratio is 60 per cent. What is the common-sizepercentage for the dividends paid?A. 0.99 per centB. 1.18 per centC. 1.21 per centD. 1.36 per centE. 1.42 per cent

Step 1: Define Retention RatioThe retention ratio and dividend payout ratio has an inverse…

Answered: A firm has sales of $529,000 for the…

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

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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