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Bubba Gumm Company Has an Expected ROE of 9

Question 37

Multiple Choice

Bubba Gumm Company has an expected ROE of 9%.The dividend growth rate will be _______ if the firm follows a policy of plowing back 10% of earnings.


A) 90%
B) 10%
C) 9%
D) 0.9% 9% * 0.10 = 0.9%.

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