What is the plowback ratio

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1. What is the total cash flow for Firm A: $75,000 sales, $2,000 cash dividends, $50,000 COGS, $4,000 administrative expenses, $3,000 depreciation expense, $5,500 interest expense, no changes in working capital, and a tax rate of 35%?

$9,125

$10,520

$8,125

$11,125

2. What is the plowback ratio in the previous question?

75.4%

24.6%

17.9%

78.1%

Reference no: EM131523457

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