If the Coefficient of Determination Is

question 39

Multiple Choice

If the coefficient of determination is .81, then the coefficient of correlation _____.

• A) is .6561
• B) must be 0.9
• C) must be positive
• D) None of the answers is correct.

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Definitions:

Retention Ratio

The fraction of net profits not paid out as dividends but kept within the corporation for reinvestment or other purposes.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, representing how much money a company returns to shareholders versus retaining for growth.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

External Financing Needed

The additional funds a company requires from external sources to finance its planned activities or growth when internal cash flows are insufficient.