If the companys ROE is permanently less than the required rate of return, the optimal payout policy
Fantastic news! We've Found the answer you've been seeking!
Question:
“If the company’s ROE is permanently less than the required rate of return, the optimal payout policy for the company will be to pay all Earnings as Dividends”
Do you agree with the statement? Why?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date: