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If a Firm Pays Out 3020% of Its Earnings as Dividends

Question 60

Multiple Choice

If a firm pays out 3020% of its earnings as dividends and has averaged a 20 percent return on equity, how quickly can the firm grow while maintaining a constant debt to equity mix?


A) 6.4%.
B) 10.2%.
C) 16.3%.
D) 2019.0%.
E) none of the above.

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