What Is the Plowback Ratio for a Firm That Has

question 9

Multiple Choice

What is the plowback ratio for a firm that has earnings per share of $12.00 and pays out $4.00 per share as dividends?

• A)25.00 percent
• B)33.33 percent
• C)66.67 percent
• D)75.00 percent

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Definitions:

Student Loans

Financial borrowings aimed at financing higher education expenses, which must be repaid by the borrower.

Interest Rate

The part of a loan charged as interest to the borrower, typically demonstrated as an annual percentage of the unsettled loan portion.

Monthly Payment

A regularly scheduled payment that is often used to repay loans over a specific period of time.

Lump Sum

A single payment made at a particular time, as opposed to several smaller payments or installments.