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A Firm Maintains a Constant Dividend Payout Ratio of 0

Question 16

Multiple Choice

A firm maintains a constant dividend payout ratio of 0.45.What must the plowback ratio be?

A) 1 + 0.45
B) 1 - 0.45
C) 1 × 0.45
D) 1 / 0.45
E) 0.45

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