ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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EARNINGS RETENTION Definition
EARNINGS RETENTION is the proportion of net income that is not paid in dividends. A firm earning $80 million after taxes and paying dividends of $20 million has a retention rate of $60 million/$80 million, or 75%. A high retention rate makes it more likely a firms income and dividends will grow in future years.
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GROSS PAY is employee salary prior to the application of taxes and other deductions.
ESCUDO is a currency of Chile, Mozambique, and Portugal.