One Common Method of Estimating the Growth Rate of Dividends

question 88

Multiple Choice

One common method of estimating the growth rate of dividends is to

• A) randomly assign an annual growth rate of 4% to the latest dividend amount.
• B) multiply the return on assets by the dividend payout ratio.
• C) multiply the return on equity by the firm's retention rate.
• D) multiply the return on equity by the dividend payout ratio.

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