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:

Job Performance

The effectiveness and efficiency with which an individual fulfills their roles and responsibilities at work.

Delivering Pizza

The task of transporting and handing over pizza from the restaurant to the customer's location, often performed as a job by individuals.

Speed

The rate at which someone or something is able to move or operate.

Procrastination

Delaying a task for an invalid or weak reason.