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?

Related Mcqs:

1. Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?

   A. 5 days
   B. 36 days
   C. 48 days
   D. 73 days

2. A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

   A. Rs. 300,000
   B. Rs. 500,000
   C. Rs. 800,000
   D. Rs. 1100,000

3. Annual cash dividends divided by annual earnings; or alternatively, dividends per share divided by earning per share is termed as:

   A. Earning per share ratio
   B. Proposed dividend ratio
   C. Dividend payout ratio
   D. Expected dividend ratio

4. Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________?

   A. 0.07%
   B. 7.14%
   C. 0.05 times
   D. 7.15 times

5. The net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be ________?

   A. 0.0007
   B. 0.0714
   C. 0.05 times
   D. 7.15 times

6. Net income is $2250 and non cash charges are $1150 then net cash flow would be _________?

   A. $1,100
   B. $3,400
   C. $2,200
   D. $3,500

7. Which of the following is measured by retention ratio?

   A. Operating efficiency
   B. Asset use efficiency
   C. Financial policy
   D. Dividend policy

8. In retention growth model, payout ratio is subtracted from one to calculate___________?

   A. Present value ratio
   B. Future value ratio
   C. Retention ratio
   D. Growth ratio

9. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

   A. Rs. 33,000
   B. Rs. 25,000
   C. Rs. 17,000
   D. Rs. 8,000

10. You need Rs. 10,000 to buy a new television. If you have Rs. 6,000 to invest at 5 percent compounded annually, how long will you have to wait to buy the television?

    A. 8.42 years
    B. 10.51 years
    C. 15.75 years
    D. 18.78 years