Last Year, a Firm Earned $67,800 in Net Income on Sales

question 60

Multiple Choice

Last year, a firm earned $67,800 in net income on sales of $934,600.Total assets increased by $62,000 and total equity increased by $43,500 for the year.No new equity was issued and no shares were repurchased.What is the retention ratio?

• A)29.62 percent
• B)35.84 percent
• C)56.25 percent
• D)70.38 percent
• E)64.16 percent

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Definitions:

Non-collusive Oligopolist

A firm in an oligopoly market structure that independently sets prices or output levels without engaging in explicit agreements with rivals.

Equilibrium Price

The price at which the quantity of a good or service supplied equals the quantity demanded, resulting in no surplus or shortage in the market.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where market supply and demand balance each other.

Payoff Matrix

A table that displays the potential outcomes and strategies for each player in a game, used in game theory to determine the best strategies and predict the actions of the participants.