JAM Co has a dividend payout ratio of 15% (which means it has a retention ratio...
JAM Co has a dividend payout ratio of 15% (which means it has a retention ratio of 85%) If Return on Earnings is 3.5%, what is the expected growth rate for dividends?
Homework Answers
Expected growth rate=Retention ratio*ROE
Expected growth rate=85%*3.5%
Expected growth rate=2.975%
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