Calculate Retention Ratio Given the Following Information: EBIT $100,000; Tax

question 17

Multiple Choice

Calculate retention ratio given the following information: EBIT $100,000; tax rate 30%; dividends paid $24,500.

• A) 35%
• B) 65%
• C) 40%
• D) 50%
• E) 70%

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Definitions:

Rationalism

A philosophy which emphasizes reason as the primary source of knowledge and justification over sensory experience.

National Priorities

The objectives or goals that a country considers most important and urgent for its development and welfare.

National Opinion Research Center

An independent research organization at the University of Chicago focusing on social science research to guide and inform public opinion and policy.

Rhodesia

A former name for Zimbabwe, used during its period of unrecognised independence under white minority rule from 1965 to 1979.