Use the Following to Answer Questions

question 17

Multiple Choice

Use the following to answer questions
Figure: Corn and Watches in the United States and Canada
-(Figure: Corn and Watches in the United States and Canada) Referring to the graphs,we see that the United States should export _____ to Canada and import _____ from Canada.

• A) watches;corn
• B) watches;nothing
• C) corn;watches
• D) corn;nothing

---

Definitions:

Planning Horizon

The long-range time period the financial planning process focuses on, usually the next two to five years.

Dividend Policy

A company's strategy or policy to decide how much profit it will pay out to shareholders as dividends.

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.