A Firm Had Earnings Per Share of $3

Multiple Choice

A firm had earnings per share of $3.25 for the year.The book value per share at the beginning of the year was $13.If the firm paid out $.975 in dividends per share at the end of the year,what is the retention ratio for the firm?

A) 33.33%
B) 30%
C) 7.5%
D) 75%
E) 70%