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Thompson, Inc

Question 67

Multiple Choice

Thompson, Inc. has a 40% dividend payout ratio. It's projections for next year include sales of $6 million and a return on sales of 12%. How much should be available in retained earnings to reduce the external funding requirement?


A) $240,000
B) $288,000
C) $360,000
D) $432,000
E) $720,000

Correct Answer:

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