单选题 A stock's dividend growth rate is a function of each of the following EXCEPT:

A、

A. profit margin.
B、

B. total asset turnover.
C、

C. P/E ratio.

【正确答案】 C

【答案解析】Assuming past investments are stable and earnings are calculated to allow for maintenance of past earnings power, then the firm's expected dividend growth rate (g) can be defined as the firm's earnings plowback or retention rate (RR) times the return on the equity (ROE) portion of new investment. RR is equal to 1 minus the dividend payout ratio, and ROE equals profit margin times total asset turnover times financial leverage. This growth rate is also called the sustainable growth rate.