Suppose a company earns a profit this year and has a dividend payout ratio of one half. What does this mean? a. it will have no retained earnings
b. Its book value at the beginning of next year will be less than that of this year
c. It will not pay out all its earnings as dividends
d. All the above

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer: