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A Firm Had Net Income of $1,000,000 During the Year

Question 24

Multiple Choice

A firm had net income of $1,000,000 during the year. If the firm paid a $2.50 per share dividendand there are 300,000 shares outstanding, what is the firm's retention ratio?


A) 25%
B) 50%
C) 75%
D) cannot be determined with the information provided

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