A company has a return on equity (ROE) of 20 percent, and from earnings per share of

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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.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Dec 28, 2023 01:38 PM

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A company has a return on equity (ROE) of 20 percent, and from earnings per share of

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The companys sustainable growth rate SGR can be calculated using the following formula SGR ROE Reten...View the full answer

Fundamentals Of Investments Valuation And Management

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