Multiple Choice
Low Tech Company has an expected ROE of 10%.The dividend growth rate will be ________ if the firm follows a policy of paying 40% of earnings in the form of dividends.
A) 6.0%
B) 4.8%
C) 7.2%
D) 3.0% 10% *0.60 = 6.0%.
Correct Answer:
Verified
Correct Answer:
Verified
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