Debra Is a Very Active Child

question 85

Multiple Choice

Debra is a very active child. She loves to tumble and show off. She always tries, what her parents consider, hair-raising stunts. She also loves running and believes she can run faster than her parents. This type of activity level and confidence is most characteristic of

• A) 1-year-olds.
• B) 2-year-olds.
• C) 3-year-olds.
• D) 5-year-olds.

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Definitions:

Debt-Equity Ratio

An indicator that specifies the proportional role of shareholders' equity and debt in asset funding.

Dividend Payout Ratio

The fraction of earnings a firm pays out to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.

Retained Earnings

Retained earnings refer to the portion of a company's profits that are kept by the company instead of being paid out as dividends to shareholders, often used for reinvestment in the business or to pay down debt.

Dividend Payout Ratio

A financial metric that shows what portion of a company's net income is paid out to shareholders in the form of dividends.