Calculate Retention Ratio Given the Following Information: EBIT $100,000; Tax

question 17

Multiple Choice

Calculate retention ratio given the following information: EBIT $100,000; tax rate 30%; dividends paid $24,500.

• A) 35%
• B) 65%
• C) 40%
• D) 50%
• E) 70%

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Definitions:

U.S. Tariff

Taxes imposed by the United States on imported goods to protect domestic industries and generate revenue.

Steel

A hard, strong alloy made primarily of iron and carbon, used extensively in construction and manufacturing.

Imports

Goods and services that are brought into a country from abroad for sale.

Price

The amount of money required to purchase a product or service.