Based on U

question 39

Multiple Choice

Based on U.S.income data from 2008,the bottom fifth of all families received approximately what percent of all income?

• A) 48 percent
• B) 21 percent
• C) 10 percent
• D) 4 percent

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Definitions:

External Financing Needed

The additional funds a company requires from external sources to finance its planned activities or growth when internal cash flows are insufficient.

Profit Margin

A measure of profitability calculated as net income divided by revenues, expressed as a percentage.

Capital Intensity Ratio

A metric that measures the amount of assets required to generate one dollar of revenue; the higher the ratio, the more capital-intensive the business.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, expressed as a percentage of the company’s total net income.