This is the proportion of each dollar of earnings per share that is retained by the firm.
A) Internal rate of return
B) Internal growth rate
C) Retention rate
D) Dividend payout ratio

Question

Quizplus · Accepted Answer

The retention rate is the proportion of earnings per share that is retained by the firm. The other options (A, B, and D) relate to different financial ratios or measures. The internal rate of return is a measure used in capital budgeting to evaluate the profitability of an investment. The internal growth rate is the maximum rate of growth a company can achieve without raising additional funds. The dividend payout ratio is the proportion of earnings distributed as dividends to shareholders.

This Is the Proportion of Each Dollar of Earnings Per