Based on the Sustainable Growth Model,a Decrease in the Dividend

question 1

True/False

Based on the sustainable growth model,a decrease 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:

Rewards

Positive reinforcements that encourage certain behaviors by providing a desirable outcome or benefit when those behaviors are performed.

Shaping

A method used in behavioral psychology to gradually teach a new behavior through reinforcement of successive approximations to the desired behavior.

Emotional Disturbance

A condition characterized by significant difficulties in emotional regulation, leading to problems in social, educational, or occupational functioning.

Communicate

The process of sharing or exchanging information, feelings, or ideas through speech, writing, gestures, or other means.