Examlex
Use a calculator to find the value of the expression rounded to two decimal places.
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External Financing Needs (EFN)
The amount of funding a business requires from external sources to finance its planned growth or expansion activities.
Negative EFN
External Financing Needed; a scenario where a negative value indicates a surplus of funds, implying no external financing is required for growth or operations.
Retention Ratio
The proportion of net income that is retained in the business rather than paid out as dividends, indicating reinvestment rate.
Plowback Ratio
A measure of how much earnings are retained by a company after dividends are paid, as opposed to being paid out to shareholders.
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