Brevik Builders Has an Expected ROE of 25

question 31

Multiple Choice

Brevik Builders has an expected ROE of 25%. Its dividend growth rate will be ________ if it follows a policy of paying 30% of earnings in the form of dividends.

• A) 5%
• B) 15%
• C) 17.5%
• D) 45%

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Definitions:

Piaget's Stages

A theory describing the cognitive development of children, segmented into four stages: sensorimotor, preoperational, concrete operational, and formal operational.

Sensorimotor Stage

In Piaget’s theory, the stage (from birth to about 2 years of age) during which infants know the world mostly in terms of their sensory impressions and motor activities.

Concrete Operational

A stage in cognitive development, according to Piaget, where children aged about 7-12 years develop logical thinking but are still not capable of abstract thinking.

Motor Development

The process through which humans progress through a predictable set of movements and physical abilities throughout their lifespan.