标题: Retention Ratio page 72/73 Schweser Equity [打印本页] 作者: Viceroy 时间: 2013-4-28 10:07 标题: Retention Ratio page 72/73 Schweser Equity
Do they have the retention ratio an payout ratio the wrong way around in the blue box? Dividend/Earnings, seems like a payout ratio no? they have it as the retention ratio (in the example, it’s 50% anyways, so it’s confusing)作者: ruchita 时间: 2013-4-28 10:07
It is correct - they don’t define it as dividend/earnings. They simply skip the step to show that RE = earnings - div
As you stated since RR and payout are both 50%, it can be confusing when you use div $ amount (which happens to be RE for the year) in the numerator of the RR.
