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Please explain why plowback ratio is .667. According to the formula: internal growth rate = plowback * roe*(equity/asset), plowback ratio is 0.333333, why selected 0.6667?

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Please explain why plowback ratio is .667. According to the formula: internal growth rate = plowback * roe*(equity/asset), plowback ratio is 0.333333, why selected 0.6667?

image text in transcribed
Calculate the plowback ratio given the following information : Data : Internal Growth Rate 3 . 20% ROE 16.00 Equity / Assets 60.00% 333 667 0 750 855 Internal Growth Rate = Plowback Ratio x ROE X Equity / Assets Plowback Ratio = Internal Growth Rate / ( ROE X Equity / Assets ) Plowback Ratio 3. 20%| 0.096 Plowback Ratio 0.333333

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