Stockholders of Dogs R Us Pet Supply expect a 12% rate of return on their...

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Finance

Stockholders of Dogs R Us Pet Supply expect a 12% rate of return on their stock. Management
believes that ROE will be 13% for the next 5 years because of a new pet product. Given this,
the firm's optimal dividend payout ratio is now (4 points)
A. 0%
B. 100%
C. between 0% and 50%
D. between 50% and 100%

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