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Umber, Inc. just paid a dividend of $2.00 per share. And next year's dividend will be $2.02. What is Umber's plowback ra...

Umber, Inc. just paid a dividend of $2.00 per share. And next year's dividend will be $2.02. What is Umber's plowback ratio if it has a ROE of 11.40%?  (Round your answer to 2 decimal places.)

Plowback ratio = ?

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Answer #1

Growth = = ROEX b 1.00% (2.02/2)^(1/1)-1 so, retention ratio or plowback ratio= 8.77% [0.01 -0.114]

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