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Which one of the following correctly defines the retention ratio? Equity rises $500,000; net plant and equipment falls $500,000 Cash rises $500,000; net plant and

Which one of the following correctly defines the retention ratio?

Equity rises $500,000; net plant and equipment falls $500,000

Cash rises $500,000; net plant and equipment falls $200,000; equity rises $300,000

Cash rises $500,000; accounts receivable falls $200,000; goodwill rises $350,000

Cash rises $500,000; net plant and equipment falls $500,000

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