A firm cuts its dividend payout ratio. As a result, you know that the firm's _______.
A. return on assets will increase
B. earnings retention ratio will increase
C. earnings growth rate will fall
D. stock price will fall
Answer: B
A firm cuts its dividend payout ratio. As a result, you know that the firm's _______.
A. return on assets will increase
B. earnings retention ratio will increase
C. earnings growth rate will fall
D. stock price will fall
Answer: B