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A Company Has a Dividend Payout Ratio of 35 Percent

Question 52

Multiple Choice

A company has a dividend payout ratio of 35 percent.If the company's return on equity is 15 percent,what is the expected growth rate if no new outside financing is used?


A) 4.50%
B) 5.25%
C) 7.75%
D) 8.25%
E) 9.75%

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