If Questar retains 44% of its earnings, and can earn a return of 3% on reinvested funds, at what rate can dividends grow indefinitely?

Questar financial analysis | Business & Finance homework help

If Questar retains 44% of its earnings, and can earn a return of 3% on reinvested funds, then the rate at which dividends can grow indefinitely is 2.16%. This figure is calculated by dividing the amount retained (44%) by the return on reinvested funds (3%), resulting in a dividend growth rate of 2.16%.