Existing ROE Plowback ratio Payout ratio g 0.25 Return on equity 0.5 The ratio of retained earnings over net income 0.5 The ratio of dividends paid over net income 0.125 Sustainable growth rate = ROE * plowback ratio $4 $2 EPS DIVO r Po 0.2 30.00 $ Firm is considering the share price impact of a reduction in plowback ratio to 0.30 starting in year 6 onward. Please a template calculate the price impact of such as policy change. ROE 0.2 Plowbacknew t=6 and onward 0.3 Plowbackt-1 to 5 remains @ 0.5 Payout new tes and onward 0.7 Payoutta tos remains @ 0.5 Calculate the price impact of reducing plowback ratio to 0.3 starting in year 6 onward. Existing ROE Plowback ratio Payout ratio g 0.25 Return on equity 0.5 The ratio of retained earnings over net income 0.5 The ratio of dividends paid over net income 0.125 Sustainable growth rate = ROE * plowback ratio $4 $2 EPS DIVO r Po 0.2 30.00 $ Firm is considering the share price impact of a reduction in plowback ratio to 0.30 starting in year 6 onward. Please a template calculate the price impact of such as policy change. ROE 0.2 Plowbacknew t=6 and onward 0.3 Plowbackt-1 to 5 remains @ 0.5 Payout new tes and onward 0.7 Payoutta tos remains @ 0.5 Calculate the price impact of reducing plowback ratio to 0.3 starting in year 6 onward