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A. Option A
B. Option D
C. Option C
D. Option B
Answer: B
NEW QUESTION: 2
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A. 40%
B. 60%
C. 0%
D. 20%
E. 80%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The amount of new investment, which must be financed with equity, is: $1,200,000 x 40% = $480,000.
Since the firm has $600,000 of net income only $120,000 will be left for dividends. This means the payout ratio is $120,000/$600,000 = 20%.
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