Answered: 1) Increasing its dividend retention…

Business

Finance

1) Increasing its dividend retention rate 2) Increase its ROE 3) Increase

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach

Section: Chapter Questions

Problem 1DIC

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Question

A firm can increase its growth rate (g) by

1)	Increasing its dividend retention rate

2)	Increase its ROE

3)	Increase its required return

a and b

5)	all the above

Definition Definition Dividend rate is the percentage of total net income distributed as dividend to the shareholders.

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