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1. A company with sustainable Return on Equity (ROE) of 20% which is reinvesting 75% of earnings can potentially sustain what rate of growth in

1. A company with sustainable Return on Equity (ROE) of 20% which is reinvesting 75% of earnings can potentially sustain what rate of growth in revenue and profits?


2. Which of the following does not provide an indication of whether a listed company is cheap or expensive?
 a. Price to cash flow multiple
 b. Return on Equity (ROE) percentage
 c. Price to book ratio
 d. Enterprise Value to EBITDA multiple

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