The Retention Ratio Is Equal To

question 54

Multiple Choice

The retention ratio is equal to:

• A) (net income - dividends paid)/sales.
• B) The change in retained earnings/sales.
• C) 1 - dividend payout ratio.
• D) Net income × (1 + dividend payout ratio).
• E) 1 - plowback ratio.

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Definitions:

Moral Hazard

The situation where one party is more likely to take risks because another party bears the cost of those risks.

Regulatory Capture

A situation where regulatory agencies become dominated by the industries they were created to regulate, leading to conflicts of interest.

Automobile Safety

Measures and technologies implemented in vehicles to ensure the safety and protection of passengers and pedestrians.

Fuel Requirements

Specifications or criteria that need to be met regarding the type and quality of fuel used for certain engines or machinery.