The dividend growth rate is equal to the product of return on assets and return on equity option (D) is correct.
<h3>What is return on equity?</h3>
The return on equity ratio shows how much money a company makes on the money it invests in its shareholders. Investors frequently use this metric to assess current and potential business investments.
As we know, the dividend growth rate is the annualized percentage rate of increase in a stock's dividend over a given time period.
Dividend growth rate = (Return on assets)×(Return on equity)
Thus, the dividend growth rate is equal to the product of return on assets and return on equity option (D) is correct.
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