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A Firm Has Current After-Tax Earnings of $1,000,000 and Has

Question 75

Multiple Choice

A firm has current after-tax earnings of $1,000,000 and has declared a cash dividend of $400,000. The firm's dividend payout ratio is ________.

A) 2.5 percent
B) 2.0 percent
C) 4.0 percent
D) 40 percent

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