The Ratio Percentage of Earnings Retained Is the Same as That

question 33

Multiple Choice

The ratio percentage of earnings retained is the same as that termed:

• A)dividend yield.
• B)dividend payout.
• C)this year's retained earnings to net income.
• D)return on common equity.
• E)book value.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss.

Common-sized Balance Sheet

A balance sheet in which each line item is expressed as a percentage of total assets, facilitating comparison with other companies regardless of size.

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement, allowing for easy comparison and analysis of different-sized companies.

Cost Of Goods Sold

Costs directly linked to the creation of products sold by a company, including expenses for materials, labor, and overhead.