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What Is the Plowback Ratio for a Firm That Has

question 126

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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?


Definitions:

Additive

A substance added to another substance to alter or improve its qualities, such as food additives to enhance flavor or preserve freshness.

Dichromatic

Having two colors; in vision science, it refers to a form of color blindness in which a person can distinguish only two of the three basic color channels.

Subtractive Color Mixing

A process by which colors are created by absorbing or filtering out parts of the light spectrum, as seen in mixing pigments in paints.

Blending

The cognitive process of combining two or more distinct entities or ideas into a new, unified concept.

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