Asked by Khristy Ramirez on Jun 04, 2024
Verified
Brevik Builders has an expected ROE of 25%. Its dividend growth rate will be ________ if it follows a policy of paying 30% of earnings in the form of dividends.
A) 5%
B) 15%
C) 17.5%
D) 45%
Dividend Growth Rate
The annualized percentage rate of growth of a company's dividend payments, indicating how quickly the dividend payments have grown over a specific period.
Expected ROE
The anticipated return on equity, calculated based on expected future earnings divided by shareholders' equity.
- Examine the influence of changes in dividend policy on stock prices and investor profitability.
Verified Answer
MS
Learning Objectives
- Examine the influence of changes in dividend policy on stock prices and investor profitability.