Other things being equal, a low ________ would be most consistent with a relatively high growth rate of firm earnings.
A) dividend-payout ratio
B) degree of financial leverage
C) variability of earnings
D) inflation rate

Question

Quizplus · Accepted Answer

A low dividend-payout ratio means that the company is reinvesting more of its earnings back into the business, which can support higher growth rates.

Other Things Being Equal, a Low ________ Would Be Most