Calculate the Plowback Ratio Given the Following Information A)333
B)

question 68

Multiple Choice

Calculate the plowback ratio given the following information: $$\begin{array}{l}\begin{array} { | l | c | r | } \hline\text { Data: }\\\hline \text { Internal Growth Rate } & = & 3.20 \% \\\hline \text { ROE } & = & 16.00 \% \\\hline \text { Equity/Assets } & = & 60.00 \% \\\hline\end{array}\end{array}$$

• A).333
• B).667
• C).750
• D).855

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Definitions:

Linear Programming

A mathematical method used to find the best possible outcome in a given mathematical model with linear relationships.

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A collection of stocks, bonds, or other investment vehicles chosen by an individual or institution to achieve specific financial goals.

Objective Function

A mathematical function used in optimization to define the goal of the optimization problem, typically involving the maximization or minimization of some quantity.

Decision Variables

Variables that decision-makers control in optimization problems, representing choices available to achieve the desired outcome.