Examveda
Examveda

In retention growth model, percent of net income firms usually pay out as shareholders dividends is classified as

A. payout ratio

B. payback ratio

C. growth retention ratio

D. present value of ratio

Answer: Option A

Solution(By Examveda Team)

In retention growth model, percent of net income firms usually pay out as shareholders dividends is classified as payout ratio. The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company.

This Question Belongs to Commerce >> Financial Management

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