In retention growth model, percent of net income firms usually pay out as shareholders dividends is classified as

The correct answer is A. payout ratio.

The payout ratio is the percentage of a company’s net income that it pays out to shareholders in the form of dividends. It is calculated by dividing the company’s dividend payments by its net income.

The payout ratio is an important metric for investors to consider when evaluating a company’s stock. A high payout ratio indicates that a company is returning a lot of money to shareholders, which can be a good sign for investors. However, a high payout ratio can also mean that a company is not reinvesting enough money in its business, which could lead to slower growth in the future.

The other options are incorrect.

• The payback ratio is the amount of time it takes for a company to recover its initial investment in a project.
• The growth retention ratio is the percentage of a company’s net income that it retains for reinvestment in the business.
• The present value of a ratio is the value of a future stream of cash flows discounted back to the present.