1. Sustainable Growth (LO1, CFA6) A company has a return on equity (ROE) of 20 percent, and...

Question:

1. Sustainable Growth (LO1, CFA6) A company has a return on equity (ROE) of 20 percent, and from earnings per share of $5 it pays a $2 dividend. What is the company’s sustainable growth rate?

a. 8 percent

b. 10 percent

c. 12 percent

d. 20 percent

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

Question Posted: