The higher a firm's dividend payout ratio, the higher is the firm's internal growth rate.

Name: The higher a firm's dividend payout ratio, the higher is the firm's internal growth rate.
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A high dividend payout ratio means that the firm is distributing a larger portion of its earnings to shareholders, leaving less for reinvestment in the company. This reduces the amount of funds available for internal growth, leading to a lower internal growth rate.

The Higher a Firm's Dividend Payout Ratio, the Higher Is