Suppose a company earns a profit this year and has a dividend payout ratio of one half. What does this mean?

a. it will have no retained earnings
b. Its book value at the beginning of next year will be less than that of this year
c. It will not pay out all its earnings as dividends
d. All the above

Question

03-01-2021
Business

Answered

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Suppose a company earns a profit this year and has a dividend payout ratio of one half. What does this mean?

a. it will have no retained earnings
b. Its book value at the beginning of next year will be less than that of this year
c. It will not pay out all its earnings as dividends
d. All the above

Sagot :

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