### Retention Ratio (Plowback Ratio)

Investor institutional Retail Speculator. GE gives dividends every year to it shareholders. The numerator of this equation calculates the earnings that were retained during the period since all the profits that are not distributed as dividends during the period are kept by the company. From Wikipedia, the free encyclopedia. This article needs additional citations for verification.

## Accounting Topics

The effective rate is calculated in the following way, where r is the effective annual rate, i the nominal rate, and n the number of compounding periods per year for example, 12 for monthly compounding:. The effective interest rate is a special case of the internal rate of return. If the monthly interest rate j is known and remains constant throughout the year, the effective annual rate can be calculated as follows:.

The annual percentage rate APR is calculated in the following way, where i is the interest rate for the period and n is the number of periods. In accountancy the term effective interest rate is used to describe the rate used to calculate interest expense or income under the effective interest method.