American Generation Ecology (AGE) expects to grow at a constant rate of 4 percent forever. Its target debt/asset ratio is 60 percent and it expects to have profitable investments of $300,000 this year. AGE plans to continue paying the same dividend that has been paid the past 20 years, $1.50 per share, long into the future. The firm has 400,000 shares of stock outstanding. If net income is expected to be $800,000, what should be AGE's dividend payout ratio this year?
A. 15.4%
B. 25.0%
C. 75.0%
D. 46.2%
E. 60.0%
Answer: C
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a. Assets decrease and stockholders' equity decreases. b. Liabilities increase and stockholders' equity increases. c. Assets decrease and liabilities decrease. d. Liabilities increase and stockholders' equity decreases.
The McDonald's fast-food restaurant chain uses Ronald McDonald, a clown, as its primary character. Which message execution style is used by McDonald's?
A) technical expertise B) lifestyle C) personality symbol D) image E) slice of life
Which of the following schools of law is criticized for creating a static jurisprudence because it does not take into account social and ethical factors?
A) the sociological school B) the American realist school C) the positivist school D) the natural law school
Sales of private-label brands continue to increase, particularly in big-box stores such as Costco and Trader Joe's.
Answer the following statement true (T) or false (F)