MJ Co. pays out 60% of its earnings as dividends. Its return on equity is 20%. What is the dividend growth rate for the firm? 913 viewsJanuary 7, 2017 0 Darshita6.14K January 7, 2017 0 Comments MJ Co. pays out 60% of its earnings as dividends. Its return on equity is 20%. What is the dividend growth rate for the firm? A) 3% B) 5% C) 8% D) 12% E) None of the above 1 Answer ActiveVotedNewestOldest 0 Darshita6.14K Posted January 7, 2017 0 Comments Answer: C g = (1 – 0.6)*20 = 8% Register or Login
