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A Payout Ratio of 35% for a Company Indicates That

Question 45

Multiple Choice

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


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

Correct Answer:

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