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30% Payout ratio

Which of the following is correct for a firm with $100,0 in net earnings,10,0 shares, and a30% payout ratio? A. Retained earnings will increase by $30,0 B. Each share will receive a $0.30 dividend. C. $30,0 will be spent on new investment. D. The dividend per share will equal $3.00.

Budgeting Financial Reporting Financial Accounting Financial Analysis Dividends
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Question added by Anayatullah Tahir , Finance Manager , Etqan Projects
Date Posted: 2014/04/14
Upvote (2) Views (6) Followers (2) Answers (2) Report Question
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Muhammad Zubair
by Muhammad Zubair , CFO / Chief Accountant , RH Group

D. The dividend per share will equal $3.00.

Anwar ul haque
by Anwar ul haque , finance manager , Silver shore trading llc

d

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