Retention ratio
The retention ratio is how much of a firm's net income is kept by the firm. In other words, how much is not paid out as dividends.
<math>Retention\ ratio = \frac{net\ income - dividends\ paid}{net\ income}</math>
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The retention ratio is how much of a firm's net income is kept by the firm. In other words, how much is not paid out as dividends.
<math>Retention\ ratio = \frac{net\ income - dividends\ paid}{net\ income}</math>
Contents |