Which one of the following statements is consistent with a relatively high earnings and dividends growth rate, all other conditions held constant?

Question

Quizplus · Accepted Answer

A low dividend payout ratio indicates that the company is retaining more earnings to reinvest in growth opportunities, which can lead to higher earnings and dividends growth rates. A low financial leverage, low rate of inflation, or low P/E ratio do not directly indicate high earnings and dividend growth rates.

Which One of the Following Statements Is Consistent with a Relatively