Multiple Choice
The retention ratio can be computed as:
A) 1 − Plowback ratio.
B) Change in retained earnings/Cash dividends.
C) 1 + Dividend payout ratio.
D) (Change in retained earnings + Cash dividends) /Net income.
E) 1 − (Cash dividends/Net income) .
Correct Answer:
Verified
Correct Answer:
Verified
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