A Company That Wants to Maintain Both a Constant-Growth Rate

question 55

Multiple Choice

A company that wants to maintain both a constant-growth rate in dividends and a constant payout ratio will have to

• A) increase assets at the same rate as dividends.
• B) grow earnings faster than dividends.
• C) increase shareholders' equity at the same rate as dividends.
• D) grow earnings at the same rate as dividends.

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Definitions:

Aggressive-rejected

A social categorization describing children or individuals who are excluded by peers because of their hostile or aggressive behavior.

Impulsive

Characterized by actions taken without forethought or consideration of the consequences, often based on immediate desires or feelings.

Hyperactive

Exhibiting excessive activity or movements, often associated with difficulty in maintaining focus or sitting still.

Confrontational

An approach or behavior characterized by direct opposition or challenge.