The Plowback Ratio Is

question 36

Multiple Choice

The plowback ratio is:

• A) equal to net income divided by the change in total equity.
• B) the percentage of net income available to the firm to fund future growth.
• C) equal to one minus the retention ratio.
• D) the change in retained earnings divided by the dividends paid.
• E) the dollar increase in net income divided by the dollar increase in sales.

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Heuristic Value

The usefulness or significance of a procedure, principle, or formula in assisting to learn, discover, or problem-solve.

Stimulates Debate

refers to causing discussion and argumentation, often by presenting new ideas or challenging existing views.

Motivates Researchers

Factors or incentives that drive individuals to undertake scientific or academic investigations.