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QUESTION
Calculate the plowback ratio given the following information : Data : Internal Growth Rate 3 . 20% ROE 16.00 Equity / Assets 60.00% 333 667 0 750 855...
Please explain why plowback ratio is .667. According to the formula: internal growth rate = plowback * roe*(equity/asset), plowback ratio is 0.333333, why selected 0.6667?
Calculate the plowback ratio given the following information :Data :Internal Growth Rate3 . 20%ROE16.00Equity / Assets60.00%3336670 750855Internal Growth Rate = Plowback Ratio x ROE X Equity / AssetsPlowback Ratio= Internal Growth Rate / ( ROE X Equity / Assets )Plowback Ratio3. 20%| 0.096Plowback Ratio0.333333