Sunrise Pvt. Ltd. provides the following information: Current sales RM50,000 Total assets RM42,500 Current liabilities RM4,200 Profit margin 9% Next year's sales are projected to be RM57,500. The firm is using the percentage-of- sales method where all assets and costs will change proportionally with sales while total liabilities and equity would be constant. Currently, the firm pays dividend of RM1,800, and wishes to maintain a constant dividend payout ratio. What is the retention ratio of the firm?

Answer rating: 100% (QA)

Answer To calculate the retention ratio of the firm we first need to determine ... View the full answer