For a Firm That Makes Heavy Use of Float, Being

question 91

True/False

For a firm that makes heavy use of float, being able to forecast its collections and disbursement check clearings is essential.

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Definitions:

Earnings Retention Ratio

A financial metric indicating the percentage of a company's net earnings that is not paid out as dividends, but instead retained for reinvestment.

Excluding Growth Opportunities

The omission or overlooking of potential future projects or investments that could lead to an increase in company value.

ROE

Return on Equity is a measure of a company's profitability relative to shareholders' equity.

Expected Earnings

The forecasted income of a company, often used by investors to gauge future profitability.