FIN 370 Course Great Wisdom / tutorialrank.com FIN 370 Course Great Wisdom / tutorialrank.com | Page 22
1 / 10 , net 45
1 / 5 , net 15
The plowback ratio is :
The dollar increase in net income divided by the dollar increase in sales .
Equal to net income divided by the change in total equity .
Equal to one minus the retention ratio .
The change in retained earnings divided by the dividends paid .
The percentage of net income available to the firm to fund future growth .
1 / 10 , net 45
1 / 5 , net 15
The plowback ratio is :
The dollar increase in net income divided by the dollar increase in sales .
Equal to net income divided by the change in total equity .
Equal to one minus the retention ratio .
The change in retained earnings divided by the dividends paid .
The percentage of net income available to the firm to fund future growth .