Which One of These Formulas Is Used to Estimate a Firm's

question 68

Multiple Choice

Which one of these formulas is used to estimate a firm's growth rate?

• A)Annual dividend / Current stock price
• B)(1 - Dividend payout ratio)× r
• C)Retention ratio × ROE
• D)Retention ratio × ROA
• E)(1 - Dividend payout ratio)× R

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Definitions:

Union

An organized association of workers formed to protect and further their rights and interests; or, in mathematics, the set containing all the distinct elements of some given sets.

Dependent Events

Events where the outcome or occurrence of the first affects the outcome or occurrence of the second.

Independent Events

Two or more events where the occurrence of one event does not affect the probability of the other(s).

Mutually Exclusive

Two events that cannot occur at the same time, meaning the occurrence of one event prevents the occurrence of the other.