The ratio percentage of earnings retained is the same as that termed:
A)dividend yield.
B)dividend payout.
C)this year's retained earnings to net income.
D)return on common equity.
E)book value.

Question

Quizplus · Accepted Answer

The ratio percentage of earnings retained is calculated by dividing the amount of earnings retained by the net income. Therefore, it is equivalent to "this year's retained earnings to net income". Dividend yield, dividend payout, return on common equity, and book value are all different financial ratios that are calculated using different values.

The Ratio Percentage of Earnings Retained Is the Same as That