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Which of the Following Statements Is True

question 120

Multiple Choice

Which of the following statements is true?


Definitions:

Negative EFN

External Financing Needed; a scenario where a negative value indicates a surplus of funds, implying no external financing is required for growth or operations.

Retention Ratio

The proportion of net income that is retained in the business rather than paid out as dividends, indicating reinvestment rate.

Plowback Ratio

A measure of how much earnings are retained by a company after dividends are paid, as opposed to being paid out to shareholders.

Finance Perspective

A viewpoint or method of considering financial aspects and impacts in decision making or analysis.

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