The firm retained earnings increase

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1. A firm earns net income of $125,000 in a given year and the firm's retained earnings increase $31,250 for that same year. The payout ratio is:

a. 75%

b. 40%

c. 60%

d. 100%

e. 25%

2. Ann is interested in purchasing a factory. Since Ann is a poor negotiator, she hires Mary to negotiate the purchase price. Identify the parties to this transaction.

a. Ann is the agent.

b. Mary is the principal.

c. Mary is the principal and Ann is the agent.

d. Ann is the principal and Mary is the agent.

e. Mary and Ann are both agents.

Reference no: EM132020318

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