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 percent
B) 5.25 percent
C) 7.75 percent
D) 8.25 percent
E) 9.75 percent
Correct Answer:
Verified
Correct Answer:
Verified
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