"Stockholders of Dogs R Us Pet Supply expect a 13% rate of return on their stock. Management has historically been generating an ROE of 12.5% but now believes that the future ROE will be 12% for the next years. Given this, the firm's optimal dividend payout ratio is now ______. "

Answer rating: 100% (QA)

SOLUTION To determine the optimal dividend payout ratio for Dogs R Us Pet Supply we need to consider several factors including the expectations of the stockholders and the companys historical and proj... View the full answer