Low Tech Company Has an Expected ROE of 10

question 38

Multiple Choice

Low Tech Company has an expected ROE of 10%.The dividend growth rate will be ________ if the firm follows a policy of paying 40% of earnings in the form of dividends.

• A)6.0%
• B)4.8%
• C)7.2%
• D)3.0% 10% *0.60 = 6.0%.

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Legal And Social Obligations

The responsibilities and duties that individuals and organizations must adhere to, based on both legal requirements and ethical considerations within society.

Enhanced Citizenship Role

A concept referring to increased participation and engagement of individuals in their community or society, beyond their basic rights and obligations.

Contemporary HRM

Modern practices and strategies in human resource management that address the changing landscape of work and organizational needs.