Examlex
Which one of the following is the best possible definition of sensitivity?
Retention Ratio
The fraction of net profits not paid out as dividends but kept within the corporation for reinvestment or other purposes.
Dividend Payout Ratio
The fraction of net income a firm pays to its shareholders in dividends, representing how much money a company returns to shareholders versus retaining for growth.
Net Income
The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.
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.
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