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%

---

Definitions:

Catcher's Signs

Are signals given by a catcher to a pitcher in baseball, indicating what type of pitch to throw and its location.

Proliferation

The rapid increase or spread of something, often used in the context of weapons, technology, or diseases.

Ballparks

Stadiums or fields where baseball games are played, often referred to more generally as venues for sporting or large-scale events.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.