what is the retention ratio
| Retention ratio is the proportion of net income retained to fund the operational needs of a business. | ||||||||||
| This ratio highlights how much of the profit is being retained as profits towards the development of the firm and | ||||||||||
| how much is getting distributed as dividends to the shareholders. | ||||||||||
| The formula to calculate the retention ratio is as under, | ||||||||||
| Retention ratio = (Net Income - Dividends) / Net Income | ||||||||||
| This ratio is also called plowback ratio. | ||||||||||
retention ratio
JAM Co has a dividend payout ratio of 15% (which means it has a retention ratio of 85%) If Return on Earnings is 3.5%, what is the expected growth rate for dividends?
A firm has a retention ratio of 30 percent and a sustainable growth rate of 6.70 percent. The capital intensity ratio is 1.16 and the debt-equity ratio is .65. What is the profit margin?
QUESTION 7: The retention ratio and the payout ratio are both irrelevant for publicly traded companies must equal 1 (100%) when added together determine the total asset turnover are based on the liquidity of the firm QUESTION 8: Which of these is purely a performance ratio? cash ratio quick ratio current ratio total asset turnover
Exelon has a 16 percent return on equity and a 43 percent retention ratio. What is the sustainable growth rate (under constant debt/equity)? Hint: Apply the formula g = ROE x b / (1 - ROE x b) 7.39 Percent 6.41 Percent 8.49 Percent 8.49 Percent 9.12 Percent
John Wilde Industries has a retention ratio of 0.75, dividends of $46,000, and total equity of $2.9 million. What is the firm’s sustainable rate of growth?
ZYX Ltd. has sales of $1,000,000, retention ratio of 60%, equity multiplier of 2.5, dividends of $30,000, and equity of $312,500. What is the growth rate that the firm can achieve without outside financing?
Suppose a firm has a retention ratio of 35 percent and net income of $3.0 million. How much does it pay out in dividends?
Suppose a firm has a retention ratio of 23 percent and net income of $4.3 million. How much does it pay out in dividends? ( Enter in dollars not in millions). Dividend Amount _______________
Suppose a firm has a retention ratio of 49 percent and net income of $8.3 million. How much does it pay out in dividends? (Enter your answer in dollars not in millions.)