Last year, Headline News Corporation paid $600,000 in dividends and retained $360,000 of the earnings it generated. The company follows a constant payout ratio dividend policy. If Headline generates $1.5 million ($1,500,000) in income this year, how much will be paid in dividends?
Last year, Headline News Corporation paid $600,000 in dividends and retained $360,000 of the earnings it generated. The company follows a constant payout ratio dividend policy. If Headline generates $1.5 million ($1,500,000) in income this year, how much will be paid in dividends?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Last year, Headline News Corporation paid $600,000 in dividends and retained $360,000 of the earnings it generated. The company follows a constant payout ratio dividend policy. If Headline generates $1.5 million ($1,500,000) in income this year, how much will be paid in dividends?
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