The retention ratio can be computed as:
A: 1 − Plowback ratio.
B: (Change in retained earnings + Cash dividends)/Net income.
C: Change in retained earnings/Cash dividends.
D: 1 − (Cash dividends/Net income).
A: 1 − Plowback ratio.
B: (Change in retained earnings + Cash dividends)/Net income.
C: Change in retained earnings/Cash dividends.
D: 1 − (Cash dividends/Net income).
举一反三
- Which financial statement reports net income and dividends?（ ）。 A: Income Statement B: Statement of Cash Flows C: Statement of Retained Earnings D: Balance Sheet
- Cash dividends/ Net income is called the _________ ratio.
- The CORRECT data flow from one financial statement to the next is: A: statement of retained earnings, income statement, balance sheet, statement of cash flows. B: balance sheet, statement of retained earnings, income statement, statement of cash flows. C: statement of retained earnings, income statement, statement of cash flows, balance sheet. D: income statement, statement of retained earnings, balance sheet, statement of cash flows.
- Which of the following items is NOT found in the financing cash flow part of the statement of cash flows（） A: Dividends paid. B: Change in paid-in capital. C: Change in retained earnings.
- If a firm does not pay cash dividends, it may reinvest the earnings and grow.