A company has an annual dividend growth rate of 4% and a retention rate of 50%. What is the company's dividend payout ratio? a. 50% b. 45% c. 60% d. 55%

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
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A company has an annual dividend growth rate of 4% and a
retention rate of 50%. What is the company's dividend
payout ratio?
a. 50%
b. 45%
c. 60%
d. 55%
Transcribed Image Text:A company has an annual dividend growth rate of 4% and a retention rate of 50%. What is the company's dividend payout ratio? a. 50% b. 45% c. 60% d. 55%
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