CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

Which of the following will increase a company's growth rate of earnings?

A. Increasing its dividend payout ratio
B. Increasing its return on equity
C. Decreasing its retention rate
Correct Answer: B

The growth rate can be computed as the product of ROE and 1 minus the dividend payout ratio.

User Contributed Comments 4

User Comment
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chesschh a & c are the same, so B
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