Suppose a firm pays total dividends of $986,000 out of net income of $2.9 million. What...
Suppose a firm pays total dividends of $986,000 out of net income of $2.9 million. What would the firm’s payout ratio be? (Round your answer to 2 decimal places.)
Homework Answers
Payout ratio = Dividends / Net income
Payout ratio = $986,000 / $2,900,000
Payout ratio = 0.34
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