A company's growth rate is a function of its return on equity and dividend payout ratios.

Name: A company's growth rate is a function of its return on equity and dividend payout ratios.
Brand: Quizplus
Rating: 4.7 (38 reviews)

Question

Quizplus · Accepted Answer

A company's growth rate can indeed be influenced by its return on equity (ROE) and dividend payout ratios, as these factors determine how much profit is reinvested in the company versus distributed to shareholders, thus affecting the company's capacity to grow.

A Company's Growth Rate Is a Function of Its Return