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

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

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