Which of the following is correct for a firm with $400,000 in net earnings,20,000 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 investment.
D) The dividend per share will equal $6.00.

Question

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The Answer of Which of the following is correct for a firm with $400,000 in net earnings,20,000 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 investment.
D) The dividend per share will equal $6.00.

Which of the Following Is Correct for a Firm with $400,000