Calculate Retention Ratio Given the Following Information: Cash Dividends Paid

question 102

Multiple Choice

Calculate retention ratio given the following information: cash dividends paid = $6,000; sales = $100,000; cost of goods sold = $45,000; selling and administrative expenses = $25,000; interest
Expense = $6,000; tax rate = 30%.

• A) 64.29%
• B) 68.23%
• C) 50%
• D) 31.77%
• E) 35.71%

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Definitions:

Entrepreneurial Process

A sequence of steps from the conception of a business idea through its launch and growth, involving opportunity recognition, resource gathering, and market entry.

Harvest Strategy

A planned approach to exiting a business or investment to achieve maximum possible returns, often used in venture capital or private equity.

Core Aspects

Fundamental elements or components that are essential to the nature or function of something.

Attract Capital

The process or strategy employed by organizations to secure investment or funding from external sources.