Calculate Retention Ratio Given the Following Information: EBIT $150,000; Interest

question 280

Multiple Choice

Calculate retention ratio given the following information: EBIT $150,000; interest expense $16,000; tax rate 30%; dividends paid $40,000.

• A) 35.55%
• B) 36.43%
• C) 57.36%
• D) 65.45%
• E) 68.23%

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