A general rule of thumb would be that firms with a faster growth rate have smaller payout ratios.

Name: A general rule of thumb would be that firms with a faster growth rate have smaller payout ratios.
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Quizplus · Accepted Answer

Firms with faster growth rates typically reinvest a larger portion of their earnings back into the business to fund their expansion, meaning they have less cash available for distributing as dividends. Therefore, they tend to have smaller payout ratios.

A General Rule of Thumb Would Be That Firms with a Faster