All Else the Same, an Increase in a fiRm's Dividend

question 310

True/False

All else the same, an increase in a firm's dividend payout ratio will decrease its sustainable growth
rate.

---

Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, homogenous products, and no single buyer or seller can influence the market price.

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Market System

A system where economic decisions, such as pricing and investment, are determined by supply and demand.

Regulatory Mechanism

A system or process designed to control or govern conduct, often within industries or sectors, through guidelines or rules.