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Kinlin Corp

question 50

Multiple Choice

Kinlin Corp. has a very high attrition rate, and the management is forced to transfer employees from one department to another to ensure smooth functioning of the departments. In order to ensure that no work is interrupted when members leave a department, the management should provide _____ to the members.


Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage.

Debt to Equity Ratio

The ratio showing the variance in financing methods between debt and equity for a company’s assets.

Dividend Payout Ratio

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

Retention Ratio

A financial metric indicating the percentage of a company's net income that is not distributed as dividends but rather retained for reinvestment in the business.

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