Which one of the following is correct for a firm with $400,000 in net earnings,50,000 shares,and a 30% payout ratio?
A) Retained earnings will increase by $120,000.
B) Each share will receive a $1.20 dividend.
C) $120,000 will be spent on new investments.
D) The dividend per share will be $2.40.
Correct Answer:
Verified
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