Q435
In retention growth model, payout ratio is subtracted from one to calculate
A.
present value ratio
B.
future value ratio
C.
retention ratio
AnswerD.
growth ratio
Answer: Option C
Solution
Answer: Option C
Solution:
In retention growth model, payout ratio is subtracted from one to calculate retention ratio. The retention ratio refers to the percentage of net income that is retained to grow the business, rather than being paid out as dividends.