Problem:
Tradewinds Corp. has revenues of $9,651,220, costs of $6,080,412, interest payment of $511,233, and a tax rate of 34 percent. It paid dividends of $1,384,125 to shareholders.
Required:
Question: Find the firm's dividend payout ratio and retention ratio.
a. 69%, 31%
b. 34%, 66%
c. 25%, 75%
d. 66%, 34%
Note: Provide thorough explanation of the given question.