For a firm with a constant payout ratio, the dividend growth rate can be estimated

Question: For a firm with a constant payout ratio, the dividend…

 

For a firm with a constant payout ratio, the dividend growth rate can be estimated as:

 

1. A) Payout x Return of equity

 

1. B) Return on retained earnings x Retention ratio

 

1. C) Payout ratio x Return on assets

 

1. D) Return on equity x (1 + Retention ratio)

 

1. E) Return of assets x Retention ratio