If a Firm Increases Its Plowback Ratio This Will Probably

question 27

Multiple Choice

If a firm increases its plowback ratio this will probably result in a(n) ________ P/E ratio.

• A)higher
• B)lower
• C)unchanged
• D)Unable to determine

---

Definitions:

Just-in-time Inventory System

A strategy to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

Operations Activities

Tasks and processes involved in the production, management, and delivery of goods and services in a business.

Production

the process of creating goods or services by combining various resources like labor, materials, and technology, intended for sale or use.

Critical Path

is the sequence of stages determining the minimum time needed to complete a project, highlighting the most important tasks that directly affect the project completion date.