Based on the Sustainable Growth Model,an Increase in the Dividend

question 4

True/False

Based on the sustainable growth model,an increase in the dividend payout ratio (1 - the retention ratio)will increase the growth in earnings per share in the future.

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Definitions:

Accounting Standards

Guidelines set by regulatory bodies that dictate how financial transactions and statements should be recorded and reported.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards in the United States.

Compromises

Agreements made to settle disputes where each party makes concessions to come to a resolution that is acceptable to all involved.

FASB

The Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards in the United States.