Nova Edge Corporation has an annual dividend growth rate of 6% and a retention ratio of 30%. What is Nova Edge's dividend payout ratio? A. 70% B. 60% C. 30% D. 50%

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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Please provide the correct answer to this financial accounting problem using valid calculations.

Nova Edge Corporation has an annual dividend growth
rate of 6% and a retention ratio of 30%. What is Nova
Edge's dividend payout ratio?
A. 70%
B. 60%
C. 30%
D. 50%
Transcribed Image Text:Nova Edge Corporation has an annual dividend growth rate of 6% and a retention ratio of 30%. What is Nova Edge's dividend payout ratio? A. 70% B. 60% C. 30% D. 50%
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