CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

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)
Correct Answer: A

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
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