Suppose a firm has a retention ratio of 60 percent, net income of $8 million, and 4 million shares outstanding. What would be the dividend per share paid out on the firm’s stock?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 3Q: If a “typical” firm reports $20 million of retained earnings on its balance sheet, can the firm...
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Suppose a firm has a retention ratio of 60 percent, net income of $8 million, and 4 million shares outstanding. What would be the dividend per share paid out on the firm’s stock?

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