Based on the sustainable growth model, if a firm increases the dividend payout ratio (1 the
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Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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If the payout ratio goes up the retention of earnings decreases In the susta...View the full answer
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Related Book For 
Fundamentals of Investment Management
ISBN: 978-0078034626
10th edition
Authors: Geoffrey Hirt, Stanley Block
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