Low Tech Company Has an Expected ROE of 10

question 41

Multiple Choice

Low Tech Company has an expected ROE of 10%. The dividend growth rate will be ________ if the firm follows a policy of paying 40% of earnings in the form of dividends.

• A) 6.0%
• B) 4.8%
• C) 7.2%
• D) 3.0%

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Definitions:

Family of Four

A household unit consisting of four members, commonly used as a standard demographic model for analysis and policy-making.

William Julius Wilson

A sociologist from America who is recognized for his contributions to urban sociology, as well as his studies on race and socio-economic class within the United States.

Middle-Class

A social group between the upper and working classes, including professionals, business people, and others with moderate income.

Black Working-Class

The Black working-class refers to members of the Black community engaged in manual or industrial labor, often focusing on economic and social challenges faced by this group.