Which of the following statements accurately describes the relationship between earnings and dividends when all other factors are held constant?
All else being equal, growth in dividends requires growth in earnings.
Retaining a higher percentage of earnings will result in a lower growth rate.
Long-run earnings growth will decrease when firms retain earnings and reinvest them in the business.
+3
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following statements accurately describes the relationship between earnings and dividends when all other factors are held ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » Which of the following statements accurately describes the relationship between earnings and dividends when all other factors are held constant? All else being equal, growth in dividends requires growth in earnings.