An Ottawa firm earns net income of $25,000 in a given year and the firm's retained earnings increase $15,000 for that same year. The retention ratio is:

Name: An Ottawa firm earns net income of $25,000 in a given year and the firm's retained earnings increase $15,000 for that same year. The retention ratio is:
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The retention ratio is calculated by dividing the increase in retained earnings by the net income. Here, it's $15,000 / $25,000 = 0.6 or 60%.

An Ottawa Firm Earns Net Income of $25,000 in a Given