What Is the Plowback Ratio for a Firm That Has

question 115

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 plowback = 1 - payout ratio
• = 1 -

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Definitions:

Logical Appeal

An approach that relies on logic and proof, instead of appealing to the emotions and compassion of the audience.

Methods Of Reasoning

The systematic processes used to arrive at conclusions, including deductive and inductive reasoning.

Indirect Approach

Organizing a message by starting with supporting evidence, constructing a case, and then introducing the main point.

AIDA Message

An acronym for Attention, Interest, Desire, and Action, used as a guideline for creating persuasive messages in marketing.