Which One of the Following Correctly Defines the Retention Ratio

question 9

Multiple Choice

Which one of the following correctly defines the retention ratio?

• A) one plus the dividend payout ratio
• B) additions to retained earnings divided by net income
• C) additions to retained earnings divided by dividends paid
• D) net income minus additions to retained earnings
• E) net income minus cash dividends

---

Definitions:

Relative Deprivation

A psychological condition where individuals feel disadvantaged or deprived when comparing themselves to others who they perceive as better off.

Impulse Gratification

The act of seeking immediate pleasure or fulfillment without regard for the longer-term consequences.

Depleting Self-Control

The concept that self-control is a finite resource that diminishes with use, leading to decreased ability to resist temptation or persist in challenging tasks.

Adaptation-Level Phenomenon

The tendency of humans to quickly adapt to a new situation or environment, making it the new normal.