Low Tech Company Has an Expected ROE of 10

question 30

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%
• E)none of the above

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