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    Exam 18: Equity Valuation Models
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    Think Tank Company Has an Expected ROE of 26
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Think Tank Company Has an Expected ROE of 26

Question 2

Question 2

Multiple Choice

Think Tank Company has an expected ROE of 26%. The dividend growth rate will be _______ if the firm follows a policy of plowing back 90% of earnings.


A) 2.6%
B) 10%
C) 23.4%
D) 90%

Correct Answer:

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