plowback ratio

[maxhiggins]

I am wondering, if a company pays out a dividend ratio over 1.0 in order to keep from cutting their dividend, does the plowback ratio go negative or does the plowback ratio stop at zero? Also what happens to a growth rate if roe is negative, and dividend payout is over 1.0?

 

[AndrewUNH]

not sure what you mean, can you post an example, thanks

 

[highrisk]

i think it stops at zero cuz it equals to the retention ratio which is 1-pay out ratio
you might find this link useful as well
http://www.investopedia.com/terms/p/plowbackratio.asp#axzz1cfF7HIkm