Why should I choose AnalystNotes?

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

Find out more

Basic Question 0 of 18

The dividend growth rate for a stable firm can be estimated as ______.

A. plowback rate * the return on equity (ROE)
B. plowback rate / the return on equity (ROE)
C. plowback rate - the return on equity (ROE)
Check Answer Next Q Print

User Contributed Comments 9

User Comment
kalps Gordon growth model
nchilds plow back rate = dividend retention rate
01121975 Plow back rate refers to earnigs retained in and not to dividend retained.
Kuki g = RR * ROE = Retention Rate * Return on Equity
DS12 They should have mentioned plow back rate = retention rate
michlam14 in the exam you are expected to know on your own that plowback=retention
2014 1-dividend payout ratio = dividend retention rate/plow back rate
tochiejehu PLOUGH BACK RATIO IS ALSO KNOWN AS RETENTION RATIO
praj24 ^ why do you have to shout! :'(
Plow back = rentention rate
You need to log in first to add your comment.
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

describe common cash flow structures of fixed-income instruments

CFA® 2025 Level I Curriculum, Volume 4, Module 2.