CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

If a company's dividend payout ratio is 20%, then its retention rate is ______.

A. 5 times
B. 80%
C. 25%
Correct Answer: B

The retention rate is computed as 1 minus the dividend payout ratio.

User Contributed Comments 9

User Comment
Done If you get this one wrong you have issues
Nikita I almost did, was thinking too much ha.
Masterkang What is there to think about?
eb2568 Now that is my kind of question!
tochiejehu easy one dear
praj24 Snap! kept thinking it's too good to be true :P
nabada0419 Retention Ratio = (NI - Div)/ NI = 1 - Div Payout Ratio
Inaganti6 Don't show up at the exam if you got this wrong.
MathLoser I have tissue
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