Investors want high plowback ratios

A) for all firms.
B) whenever ROE > k.
C) whenever k > ROE.
D) only when they are in low tax brackets.
E) whenever bank interest rates are high.

Plowback Ratios

A measure of how much of a company's net income is reinvested into the company rather than distributed to shareholders as dividends.

ROE

Return on equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company is using assets to generate profits.