A Company Has an Annual Dividend Growth Rate of 5

question 74

Multiple Choice

A company has an annual dividend growth rate of 5% and a retention rate of 40%. The company's dividend payout ratio is

• A) 35%.
• B) 40%.
• C) 45%.
• D) 60%.

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Definitions:

Estuaries

Coastal water bodies where river meets the sea, mixing fresh and saltwater and creating ecosystems with high biological productivity.

Nursery

A place specifically designed for the care and growth of young plants, trees, or children, providing appropriate conditions for development.

Sea

A large body of saltwater that is often connected to an ocean and may be partially or completely surrounded by land.

Estuary

A partially enclosed coastal body of water with one or more rivers or streams flowing into it, and with a free connection to the open sea.