What Is the Return on Equity for a Firm That

question 132

Multiple Choice

What is the return on equity for a firm that has a constant dividend growth rate of 7 percent and a dividend payout ratio of 60 percent?

• A)2.80 percent
• B)4.20 percent
• C)11.67 percent
• D)17.50 percent 7% = ROE x plowback ratio
• = ROE x (1 - .6)
• = ROE x .4

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Definitions:

Bladder Infection

An infection involving the urinary bladder, often caused by bacteria, leading to symptoms like frequent and painful urination.

Urge Urinary Incontinence

An involuntary leakage of urine accompanied by a sudden, intense urge to urinate.

Urinary Tract Inflammation

A condition marked by the presence of inflammation in the urinary system, often caused by infection and leading to symptoms such as pain and urgency.

Urge To Urinate

A strong need to urinate, which may indicate a full bladder or a medical condition affecting urinary functions.