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Music Doctors Company has an expected ROE of 14%. The dividend growth rate will be ________ if the firm follows a policy of paying 60%

Music Doctors Company has an expected ROE of 14%. The dividend growth rate will be ________ if

the firm follows a policy of paying 60% of earnings in the form of dividends.

A) 5.6%

B) 4.8%

C) 7.2%

D) 6.0%

E) none of the above

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