Question

Directions: Use the information below to answer the following question. 20Y1 20Y2 20Y3 Net Profit $350 $570 $710 after taxes Cash $75 $180 $260 dividends Which one of the following is the correct conclusion to draw from this trend? The dividend payout ratio is shrinking, which means the business will need to borrow less. The dividend payout ratio is shrinking, which will result in increased borrowing needs. es ut ra so the The dividend payout ratio is growing, which will lead to increased borrowing needs.

Answer 1