Mercury Corp. has annual sales of $2,512,654, costs of $1,080,227, interest payments of $132,375, and a tax
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Mercury Corp. has annual sales of $2,512,654, costs of $1,080,227, interest payments of $132,375, and a tax rate of 34 percent. It pays annual dividends of $525,000 to its stockholders. Calculate the firm’s dividend payout ratio and retention ratio.
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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Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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