How much does it pay out in dividends

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Reference no: EM132615736

Suppose a firm has a retention ratio of 25 percent and net income of $3.9 million. How much does it pay out in dividends?

Multiple Choice (Only One Correct Answer)

A. $975,000
B. $2.93 million
C. $3.90 million
D. $4.88 million

Reference no: EM132615736

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