Last year, Creative Artists retained $100,000 of the $250,000 net income it generated. This year, Creative generated

Question:

Last year, Creative Artists retained $100,000 of the $250,000 net income it generated. This year, Creative generated net income equal to $275,000. If Creative follows the constant payout ratio dividend policy, how much should be paid in dividends this year?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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