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The retention ratio is defined as: a.1 tax rate b.Tax rate(Depreciation Expense) c.Dividends / Earnings after taxes d.1 dividend payout ratio 10. Calculate the contingent

The retention ratio is defined as:

a.1 tax rate

b.Tax rate(Depreciation Expense)

c.Dividends / Earnings after taxes

d.1 dividend payout ratio

10. Calculate the contingent liability (option overhang) given the number of options are 50. The market

price is $75; exercise price is $60 and the firms tax rate is 30 %.

a.$875

b.$525

c.$375

d.$175

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