Calculate the dividend growth rate

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Reference no: EM13297190

Recall that the retention ratio (b) is the plowback or earnings retention, which is sometimes referred to as b or B. Therefore g = ROE x B. In 2008 the MKA Corporation reports EPS of $5.75, ROE equals 15% and the company has a dividend payout ratio of 60%. g = ROE x Retention Ratio. Calculate the dividend growth rate.

Reference no: EM13297190

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