The plowback ratio is: » MCQ Academy English

Corporate Finance

The plowback ratio is:

equal to net income divided by the change in total equity.
the percentage of net income available to the firm to fund future growth.
equal to one minus the retention ratio.
the change in retained earnings divided by the dividends paid.

Note

The plowback ratio is the percentage of net income available to the firm to fund future growth.

Tags: Long-Term Financial Planning and Growth

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