Xlink Company Has an Expected ROE of 15

question 55

Multiple Choice

Xlink Company has an expected ROE of 15%.The dividend growth rate will be _______ if the firm follows a policy of plowing back 75% of earnings.

• A)3.75%
• B)11.25%
• C)8.25%
• D)15.0% 15%* 0.75 = 11.25%.

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Definitions:

Maslow

Refers to Abraham Maslow, a psychologist best known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivational levels.

Self-actualize

The process by which individuals realize their fullest potential, achieving personal goals and self-fulfillment.

Personality

A combination of characteristics or qualities that form an individual's distinctive character.

Maslow

Renowned for his hierarchy of needs theory, Abraham Maslow, a prominent American psychologist, argued that to attain psychological health, one must satisfy fundamental human needs in a sequential manner, ending with self-actualization.