The Retention Ratio Is

question 8

Multiple Choice

The retention ratio is:

• A) equal to net income divided by the change in total equity.
• B) the percentage of net income available to the firm to fund future growth.
• C) equal to one minus the asset turnover ratio.
• D) the change in retained earnings divided by the dividends paid.
• E) the dollar increase in net income divided by the dollar increase in sales.

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Definitions:

Dichotomous Thinking

The tendency to categorize experiences, people, or items into two extreme and opposite groups.

Right Or Wrong

A moral or ethical judgment about actions or decisions based on societal, personal, or legal standards.

Blaming

The act of accusing someone of being responsible for a fault or wrong.

Scarcity

The economic problem of having seemingly unlimited human wants in a world of limited resources.