An analyst gathered the following information about a company:
Net profit margin 5.0%
Total asset turnover 2.0
Total assets/equity 2.5
Beta for the company's stock 1.5
Expected rate of return on the market index 10.0%
Risk-free rate of return 5.0%
The analyst expects the information above to accurately reflect the future. If the company wants to achieve a growth rate of at least 15% without changing its capital structure or issuing new equity, the maximum dividend payout ratio for the company would be closest to:（）
A. 0.0%.
B. 12.5%.
C. 40.0%.
参考答案：C
解析：
The growth rate for the company is the product of the return on equity (ROE) and the retention rate. The retention rate is( 1 - the dividend payout ratio). The ROE for the company is 5.0%×2.0×2.5=25%. The retention rate must be at least 60% to achieve a growth of at least
15% (0.60×25%=15%). If the retention rate is at least 60% , the maximum dividend payout ratio is 40%.