How Is a Sustainable Dividend Growth Rate Defined

question 35

Multiple Choice

How is a sustainable dividend growth rate defined?

• A)a constant rate at which dividends increase
• B)a rate of growth that does not exceed two percent of the annual increase in revenue
• C)a rate of growth that is set equal to one-half of the average growth rate of a firm's earnings
• D)a rate that can be supported over time by a company's earnings
• E)a rate of dividend growth that is equal to the discount rate used to value the firm's stock

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Definitions:

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific symptoms or affects a specific location and is not simply a direct result of physical injury.

Deviance

Actions or behaviors that violate societal norms or expectations.

Unusualness

Refers to the state of being odd, rare, or uncommon in any given context.

Exorcism

A religious or spiritual practice of evicting demons or other spiritual entities from a person or area they are believed to have possessed.