Which three of the following factors influence the rate of dividend growth?
A) The rate of return earned on those retained resources
B) The size of the original dividend
C) Rate of return earned on existing assets
D) The quantity of resources retained and reinvested within the business

Question

Quizplus · Accepted Answer

The rate of dividend growth is influenced by the rate of return earned on retained resources (A), as this affects the amount of funds available for dividend payments. The rate of return earned on existing assets (C) also affects the company's financial position and ability to pay dividends. The quantity of resources retained and reinvested within the business (D) affects the overall growth and profitability of the company, which can in turn impact dividend growth. The size of the original dividend (B) does not directly influence the rate of dividend growth, as it is based on the company's ability to generate earnings and the amount of funds available for distribution.

Which Three of the Following Factors Influence the Rate of Dividend