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For a firm with a constant payout ratio, the dividend growth rate can be estimated as: Payout ratio Return on equity. Return on assets Retention
For a firm with a constant payout ratio, the dividend growth rate can be estimated as:
- Payout ratio Return on equity.
- Return on assets Retention ratio.
- Return on equity (1 + Retention ratio).
- Payout ratio Return on assets.
- Return on retained earnings Retention ratio.
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