Question: In applying the variable-growth dividend valuation model to a company's stock, analysts frequently define the growth rate, g, as equal to ROE multiplied by the

In applying the variable-growth dividend valuation model to a company's stock, analysts frequently define the growth rate, g, as equal to

ROE multiplied by the firm's retention rate.

the dividend payout ratio multiplied by the firm's retention rate.

ROE divided by the dividend payout ratio.

P/E multiplied by the dividend payout ratio.

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