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1.Residual income is positive for firm with a ____________ 2. When a firms sustainable g < ROE dividend payout ratio should be _________ 3.Innovation led

1.Residual income is positive for firm with a ____________

2. When a firms sustainable g < ROE dividend payout ratio should be _________

3.Innovation led a firm to have a monopoly in a new product line. Analysts revised the firms long term growth rate from 5% to 8%. A few years later analysts noticed that ROE has remained stable. They concluded the firm had ______ its Payout Ratio.

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