Other things being equal,a low ________ would be most consistent with a relatively high growth rate of firm earnings and dividends.
A)dividend payout ratio
B)degree of financial leverage
C)variability of earnings
D)inflation rate
E)none of the above

Question

Quizplus · Accepted Answer

A low dividend payout ratio means that the firm is retaining more of its earnings to reinvest in the business, which can lead to higher growth rates of earnings and dividends. This is because the retained earnings can be used for research and development, expansion, and other investments that can increase the company's profitability over time. The other choices (B, C, D, and E) are not directly related to a firm's growth rate of earnings and dividends.

Other Things Being Equal,a Low ________ Would Be Most Consistent