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.