When It Is Said That Variable a Depends on Variable

question 64

Multiple Choice

When it is said that variable A depends on variable B,then A is

• A)a derivative of B.
• B)proportional to B.
• C)partially exclusive of B.
• D)a function of B.
• E)independent of B.

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Definitions:

Retention Rate

A metric indicating the percentage of earnings not paid out as dividends but retained by the company for reinvestment.

Plowback Ratio

The proportion of the firm’s earnings reinvested in the business (and therefore not paid out as dividends). The plowback ratio equals 1 minus the dividend payout ratio.

Expected Growth Rate

The anticipated rate at which an investment, economy, or other financial entity will grow over a certain period.

Rate of Return

The outcome in terms of profit or loss on an investment over a designated period, presented as a percentage of the investment’s first cost.