Examlex
All of the following statements are correct EXCEPT
Earnings Retention Ratio
The earnings retention ratio, also known as the plowback ratio, measures the percentage of net income that is retained in the company rather than being paid out as dividends.
Market Capitalization Rate
Market capitalization rate, or "cap rate", is used in evaluating and comparing the expected returns on investments in the equity market, reflecting the cost of capital for a company.
P/E Ratio
The price-to-earnings ratio, a valuation metric calculated by dividing the current market price of a stock by its earnings per share.
Dividend Plowback Ratio
The portion of a company's earnings that is not distributed as dividends but is reinvested in the business, also known as the retention rate.
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