True, A company's growth rate is a function of its return on equity and dividend payout ratios.
The total value of all dividends given when a corporation delivers cash dividends to its shareholders reduces the stockholders' equity; nevertheless, the impact of dividends varies based on the type of dividends a firm pays. Equity income mostly refers to earnings from stock dividends, which are monetary rewards given by corporations to their shareholders for purchasing their stock. To put it another way, equity income assets are ones that are known to distribute dividends. Even while dividends aren't officially included in shareholder's equity, their impact is nonetheless felt because they lower the amount of shareholder's equity on the balance sheet.
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