Northwood, Inc., has revenue of $455,316, costs of $316,487, and pays taxes at a rate of 31

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Northwood, Inc., has revenue of $455,316, costs of $316,487, and pays taxes at a rate of 31 percent. If the firm pays out 45 percent of its earnings as dividends every year, how much earnings are retained and what is the firm’s retention ratio?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:30 AM

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Northwood, Inc., has revenue of $455,316, costs of $316,487, and pays taxes at a rate of 31

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Fundamentals of corporate finance

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