What is the return on equity for a firm that has a constant dividend growth rate of 7 percent and a dividend payout ratio of 60 percent?
A)2.80 percent
B)4.20 percent
C)11.67 percent
D)17.50 percent 7% = ROE x plowback ratio
= ROE x (1 - .6)
= ROE x .4

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The Answer of What is the return on equity for a firm that has a constant dividend growth rate of 7 percent and a dividend payout ratio of 60 percent?
A)2.80 percent
B)4.20 percent
C)11.67 percent
D)17.50 percent 7% = ROE x plowback ratio
= ROE x (1 - .6)
= ROE x .4

What Is the Return on Equity for a Firm That