The Sustainable Growth Rate Can Be Calculated by Taking the Dividend

question 71

True/False

The sustainable growth rate can be calculated by taking the dividend payout ratio time return on equity (ROE).

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Definitions:

Financial Value

The quantifiable worth of an asset, security, or company, often determined by material and tangible factors within markets.

Extrinsic Rewards

Incentives provided by an external source, such as an employer, to motivate employees, which can include wages, bonuses, and other tangible benefits.

Intrinsic Rewards

Satisfaction a person receives from the process or act of performing a particular activity, rather than from any external rewards.

Higher Order Needs

Psychological desires that go beyond basic physical needs, such as the need for self-esteem, belonging, and self-actualization.