What Effect on the Growth Rate of Earnings Can Be

question 117

Multiple Choice

What effect on the growth rate of earnings can be accomplished by decreasing the dividend payout ratio from 70% to 40% if the firm has an ROE of 20%?

• A) The growth rate can increase from 6% to 10.5%.
• B) The growth rate can increase from 6% to 12%.
• C) The growth rate can increase from 8% to 14%.
• D) The growth rate can increase from 11% to 14%.

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Definitions:

Employee Referrals

Recommendations by present employees to the recruiter about possible job applicants for a position.

Organization Attraction

The appeal or draw that an organization has to potential and current employees, influenced by factors such as its reputation, culture, and benefits.

Formal Job Application

A standardized document or process used by candidates to apply for a position, detailing personal, educational, and professional information.

Redundant

Information or processes that are duplicate and unnecessary, often leading to inefficiency.