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Xlink Company Has an Expected ROE of 15

Question 55

Multiple Choice

Xlink Company has an expected ROE of 15%.The dividend growth rate will be _______ if the firm follows a policy of plowing back 75% of earnings.


A) 3.75%
B) 11.25%
C) 8.25%
D) 15.0% 15%* 0.75 = 11.25%.

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