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Which One of These Formulas Will Provide an Estimate of the Growth

Question 30

Multiple Choice

Which one of these formulas will provide an estimate of the growth rate of a security's dividends?


A) Beta × Return on equity
B) Retention ratio × Weighted average cost of capital
C) Retention ratio × Return on equity
D) Beta × Return on assets
E) Retention ratio × Return on assets

Correct Answer:

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