Handy Man Services,Inc.has net income of $525,000.What is the addition to retained earnings if the dividend payout ratio is 40 percent?
A) $123,253
B) $157,250
C) $183,750
D) $221,813
E) $315,000

Name: Handy Man Services,Inc.has net income of $525,000.What is the addition to retained earnings if the dividend payout ratio is 40 percent? A) $123,253 B) $157,250 C) $183,750 D) $221,813 E) $315,000
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Question

Quizplus · Accepted Answer

Addition to retained earnings = $525,000 × (1 - 0.40) = $315,000