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A Payout Ratio of 35 Percent for a Company Indicates

Question 53

Multiple Choice

A payout ratio of 35 percent for a company indicates that:


A) 35 percent of dividends are plowed back for growth.
B) 65 percent of dividends are plowed back for growth.
C) 65 percent of earnings are paid out as dividends.
D) 35 percent of earnings are paid out as dividends.

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