Suppose Marble is projecting a 20% increase in sales for the coming year, and that cost of goods sold and general/administrative expenses remain a constant percentage of sales. Also assume that depreciation, interest paid, and the firm's tax rate remain unchanged. What will the firm pay out in dividends in 2018? Assume the firm's dividend payout is 40%.
A) $30
B) $32
C) $48
D) $53
E) $67
Correct Answer:
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