The dividend growth rate is equal to the product of what two ratios?
A) ROA, current ratio.
B) ROE, retention ratio.
C) PM, ROA.
D) ROA, ROE.

Name: The dividend growth rate is equal to the product of what two ratios? A) ROA, current ratio. B) ROE, retention ratio. C) PM, ROA. D) ROA, ROE.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

The dividend growth rate in the Gordon Growth Model is equal to the product of the Return on Equity (ROE) and the retention ratio (the proportion of earnings not paid out as dividends).

The Dividend Growth Rate Is Equal to the Product of What