A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?
A40%
B12%
C25%
D60%
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Correct answer
A. 40%
Explanation
Retention ratio = Net income – Dividend / Net income = 250 – 150 / 250 = 0.4 or 40%
Correct answer
C. Behavioral finance
Explanation
Behavioral finance is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. annually
Explanation
annually is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. foreign bonds
Explanation
foreign bonds is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. Long-term bonds
Explanation
Long-term bonds is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Operating Risk
Explanation
Operational risk is the risk of loss resulting from ineffective or failed internal processes, people, systems, or external events that can disrupt the flow of business operations. The losses can be directly or indirectly financial.
Correct answer
D. auction process
Explanation
auction process is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. High book to market ratio
Explanation
High book to market ratio is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Non cash charge
Explanation
Non cash charge is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Hurdle rate
Explanation
Hurdle rate is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.