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:

Successfully Meeting Goal

Achieving a set objective or reaching a target as planned or desired, often through effort and determination.

Cultural Formula

A set of culturally agreed-upon expectations that shape understanding and behavior in specific situations.

Functional Value

The practical or utilitarian benefit that a product or service provides to the consumer.

Craft Product

A product that is made by hand or with limited automation, often emphasizing quality, uniqueness, and artisanal skill.