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For a firm with a constant payout ratio, the dividend growth rate can be estimated as: O Payout ratio x Return on assets. O Return

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

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