Suppose a firm has a retention ratio of 27 percent and net income of $4.2 million....

Suppose a firm has a retention ratio of 27 percent and net income of $4.2 million. How much does it pay out in dividends? (Enter your answer in dollars not in millions.)

Expert Solution

Solution

= 4200000*(1-27%)

= 3066000

jeff jeffy answered 2 years ago

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