Rapid Auto Transport (RAT) follows a constant payout ratio dividend policy, which requires the company to pay out 30 percent of income as dividends each year. If it wants to pay $840,000 in dividends next year, how much must RAT earn?

Rapid Auto Transport (RAT) follows a constant payout ratio dividend policy, which requires the company to pay out 30 percent of income as dividends each year. If it wants to pay $840,000 in dividends next year, how much must RAT earn?

Rapid Auto Transport (RAT) follows a constant payout ratio dividend policy, which requires the company to pay out 30 percent of income as dividends each year. If it wants to pay $840,000 in dividends next year, how much must RAT earn?

Rapid Auto Transport (RAT) follows a constant payout ratio dividend policy, which requires the company to pay out 30 percent of income as dividends each year. If it wants to pay $840,000 in dividends next year, how much must RAT earn?