Suppose a firm has a dividend payout ratio of 47 percent and net income of $7 million.

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Suppose a firm has a dividend payout ratio of 47 percent and net income of $7 million. What would be the annual addition to retained earnings?

a. $3,890,000.

b. $3,510,000.

c. $3,290,000.

d. $3,710,000.

Related Book For answer-question

Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders , Marcia Cornett

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Posted Date: Jan 16, 2021 09:13 PM

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Suppose a firm has a dividend payout ratio of 47 percent and net income of $7 million.

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Net income 7000000 Dividend payout ratio 47 Retention ratio 1 Dividen... View the full answer

Financial Markets and Institutions

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