Can you solve this financial accounting question using valid financial methods? A company, Bright Wave Technologies, has an annualdividend growth rate of 6% and a retention rate of 30%.The company's dividend payout ratio is:A. 45%B. 40%C. 70%D. 60%

Step 1: Definition of Dividend Payout RatioThe dividend payout ratio is the proportion of net income…

Answered: A company, Bright Wave Technologies,…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

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A company, Bright Wave Technologies, has an annual dividend growth rate of 6% and a retention rate of 30%. The company's dividend payout ratio is: A. 45% B. 40% C. 70% D. 60%