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What Is the Plowback Ratio for a Firm That Has

question 60

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What is the plowback ratio for a firm that has earnings per share of $2.68 and pays out $1.75 per share in dividends?


Definitions:

Planning Budget

A budget designed for a particular level of activity, often used for planning and forecasting purposes.

Direct Labor

Factory labor costs that can be easily traced to individual units of product. Also called touch labor.

Units

A measure of quantity in accounting, production, or inventory management, often used to quantify the amount of output or sales.

Net Operating Income

The profit generated from a company's core business operations, excluding deductions for interest and taxes.

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