the plowback ration is: equal to one minus the retention ratio.
举一反三
- The retention ratio can be computed as: A: 1 − Plowback ratio. B: (Change in retained earnings + Cash dividends)/Net income. C: Change in retained earnings/Cash dividends. D: 1 − (Cash dividends/Net income).
- A stock with a high P/E ratio is a better investment than one with a lower P/E ratio.
- Which of the following statements best compares long-term borrowing capacity ratios? A: The debt/equity ratio is more conservative than the debt ratio. B: The debt ratio is more conservative than the debt/equity ratio. C: The debt/equity ratio is more conservative than the debt to tangible net worth ratio. D: The debt to tangible net worth ratio is more conservative than the debt/equity ratio.
- A low debt ratio is safer than a high debt ratio.
- For the same firm, the current ratio is always larger than quick ratio.