The Plowback Ratio

question 138

Multiple Choice

The plowback ratio:

• A) Is equal to net income divided by the change in total equity.
• B) Shows the percentage of net income available to the firm for future growth.
• C) Plus the retention ratio must equal 100 percent.
• D) Is equal to the change in retained earnings divided by the dividends paid.
• E) Represents the earnings returned to the shareholders.

---

Definitions:

Sundays

The day of the week following Saturday and preceding Monday, often considered a day of rest or religious observance in many cultures.

Subjective Well-Being

An individual's personal assessment of their own life satisfaction, happiness, and emotional health.

Relative Deprivation

Relative deprivation refers to the experience of feeling deprived of something to which one believes they are entitled, often by comparing oneself to others.

Self-Perceived Happiness

An individual's subjective assessment of their own level of happiness and well-being.