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Define what a Dividend Payout ratio is.  Define what a retention ratio is. Calculate the dividend payout ratio AND the retention ratio based on the data below: (hint:  Dividend payout ratio is dividends/net income  , Retention ratio is addition to retained earnings/net income) Rosegarten Corporation (income statement) Sales                                                                                       $1,000 Costs                                                                                            833 Taxable Income                                                                $   167 Taxes (21%)                                                                                 35 Net Income                                                                        $    132          Dividends                                         $44 Addition to Retained Earnings     $88   Explain what your ratio's mean.......

Define what a Dividend Payout ratio is.  Define what a retention ratio is. Calculate the dividend payout ratio AND the retention ratio based on the data below: (hint:  Dividend payout ratio is dividends/net income  , Retention ratio is addition to retained earnings/net income) Rosegarten Corporation (income statement) Sales                                                                                       $1,000 Costs                                                                                            833 Taxable Income                                                                $   167 Taxes (21%)                                                                                 35 Net Income                                                                        $    132          Dividends                                         $44 Addition to Retained Earnings     $88   Explain what your ratio's mean.......

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Define what a Dividend Payout ratio is.  Define what a retention ratio is.

Calculate the dividend payout ratio AND the retention ratio based on the data below:

(hint:  Dividend payout ratio is dividends/net income  , Retention ratio is addition to retained earnings/net income)

Rosegarten Corporation (income statement)

Sales                                                                                       $1,000

Costs                                                                                            833

Taxable Income                                                                $   167

Taxes (21%)                                                                                 35

Net Income                                                                        $    132

         Dividends                                         $44

Addition to Retained Earnings     $88

 

Explain what your ratio's mean.......

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