The Retention Ratio Is Calculated As

question 173

Multiple Choice

The retention ratio is calculated as:

• A) One plus the dividend payout ratio.
• B) Additions to retained earnings divided by net income.
• C) Additions to retained earnings divided by shares outstanding.
• D) Net income minus additions to retained earnings.
• E) Net income minus cash dividends.

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Definitions:

Commonality of Databases

The practice of using uniform database structures across different applications or systems within an organization, to enhance data consistency and accessibility.

Strategic Advantage

A position of superiority or advantageous condition that a business holds over its competitors, often achieved through innovation, quality services, or cost leadership strategies.

Dependent Demand Technique

A method used in material requirements planning that calculates the need for components based on the demand for the final products they contribute to.