Mednas Corp has an expected ROE of 11%. The dividend growth rate will be _______ if the firm follows a policy of paying 25% of earnings in the form of dividends.

A) 3.0%
B) 4.8%
C) 8.25%
D) 9.0%

ROE

Stands for Return on Equity, a financial ratio that measures the profitability of a company in relation to shareholders' equity.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payouts, indicating the company's long-term earnings growth potential and financial health.

Earnings

Net income of a business entity over a set time frame, indicating its financial performance.