Explore BrainMass
Share

Explore BrainMass

    Dividend growth rate

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The dividend growth is commonly expressed by the retention growth equation g = ROE x Retention Ratio.
    Recall that the retention ratio is the plowback or earnings retention, and is sometimes written as (1- Dividend Payout Ratio).
    In 2008 the MKA Corporation reports EPS of $5.75, ROE equals 15% and the company has a dividend payout ratio of 60%. Calculate the dividend growth rate.

    © BrainMass Inc. brainmass.com October 10, 2019, 3:08 am ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/dividend-growth-rate-408767

    Solution Preview

    Dividend growth rate
    The dividend growth is commonly expressed by the retention growth equation g = ROE x Retention Ratio. ...

    Solution Summary

    The solution assists in calculating Dividend growth rate.

    $2.19