What's the Difference in the Projected ROEs Under the Restricted

question 21

Multiple Choice

What's the difference in the projected ROEs under the restricted and relaxed policies?

• A) 1.20%
• B) 1.50%
• C) 1.80%
• D) 2.16%
• E) 2.59%

---

Definitions:

Shares Outstanding

The complete count of a corporation's shares currently in possession of all shareholders, including those owned by institutional investors and the restricted shares held by the company's executives and insiders.

Cyclical Dividend Policy

A dividend payment strategy where dividends fluctuate in line with the company's earnings, which often coincide with economic cycles.

Retention Ratio

The percentage of net income that is retained by a company rather than distributed to its shareholders as dividends.

Quarterly Earnings

A corporation's earnings reported on a quarterly basis, giving investors and analysts an interim view of financial performance and profitability.