Multiple Choice
Which of the following is correct for a firm with EPS of $2.00 per share and a 45% payout ratio?
A) 45% of earnings will be plowed back into the firm.
B) Dividends will equal $1.10 per share.
C) Book value per share of equity will increase by $1.10.
D) Retained earnings will be unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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