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Dividend growth rate

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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.

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

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