Last year Universal Transportation retained $225,000 of the $750,000 net income it generated. This year Universal generated net income equal to $550,000. If Universal follows the constant payout ratio dividend policy, how much should it pay in total dividends this year?

A. $550,000
B. $385,000
C. $165,000
D. $715,000
E. $525,000


Answer: B

Business

You might also like to view...

The total of issued stock less treasury stock is referred to as authorized stock

Indicate whether the statement is true or false

Business

What should an employee expect from their company’s code of ethics?

a. general guidance on behavior b. instructions on how to react to specific scenarios c. a list of sanctions for unethical behavior d. a description of what constitutes unethical behavior

Business

Comparatively few customers complain when dissatisfied

Indicate whether the statement is true or false

Business

Push publishing can deliver results according to a schedule or as a result of an event or particular data condition.

Answer the following statement true (T) or false (F)

Business