The residual income model is used to value the stock of which type of company? A. A company with a 100 percent retention ratio B. A company with a 50 percent retention ratio C. A company that pays a level dividend D. A company that pays a rising dividend

What does the retention ratio measure? A. The proportion of a firm's income which is devoted to paying dividends B. The percentage of a firm's net income which is retained to pay debt C. The percentage of a firm's EBITDA used to fund dividend payments D. The percentage of a company's net income that's reinvested in the company