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1.Acme Sports Management has an ROE of 15.7%, a D/E ratio of .75, and sustains a dividend yield of 2.75% with a DPR of 64.6%.
1.Acme Sports Management has an ROE of 15.7%, a D/E ratio of .75, and sustains a dividend yield of 2.75% with a DPR of 64.6%. If the risk-free rate is 3.25% and the market risk premium is 6.9%, what is the firm's sustainable growth rate?
a.About 5.6%
b.About 10.1%
c.About 18.5%
d.None of the above
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