Dividend Growth Is Positively Related to the Return on Equity

question 69

True/False

Dividend growth is positively related to the return on equity.

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Definitions:

Liability

Liability refers to the legal responsibility for one's actions or omissions, which may result in being required to compensate for damage or harm caused.

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Business License

Official permission from a governmental authority allowing individuals or companies to conduct business within a certain jurisdiction.

Distributorship

An arrangement within a supply chain where a firm is authorized to distribute a manufacturer's products in a particular territory.