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.

Ans: B. the percentage of net income available to the firm to fund future growth.

Business

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Brands in highly-differentiated product classes require heavy advertising to establish a unique image

Indicate whether the statement is true or false

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