The sustainable rate of growth: increases as the dividend...

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Finance

  1. The sustainable rate of growth:

  1. increases as the dividend payout ratio increases.

  1. must be moderate over the long-term even if it is high in the short-term.

  1. assumes the debt-equity ratio will increase at the same rate as the growth rate.

  1. must exceed the required rate of return to be used in the dividend discount model.

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